Does the Illinois addendum permit arbitration to take place outside of Illinois for a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is voice. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Illinois addendum addresses the location of arbitration proceedings. Specifically, while Illinois law dictates that any franchise agreement provision that designates jurisdiction and venue outside of Illinois is void, the addendum includes an exception for arbitration.
This means that for a Buildingstars franchise in Illinois, franchisees can agree to have arbitration take place outside of the state, even though they cannot be forced to litigate disputes in another state. This is an important distinction for prospective franchisees to understand, as it clarifies their rights regarding dispute resolution.
It is advisable for potential Buildingstars franchisees in Illinois to carefully review the franchise agreement and the Illinois addendum with legal counsel to fully understand the implications of this provision and how it may affect their rights and obligations.