For Bumble Roofing franchises in Illinois, is a franchise agreement provision designating jurisdiction or venue outside of Illinois valid?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, specifically the Illinois Addendum, Illinois law governs the agreements between Bumble Roofing and its franchisees in Illinois. The FDD states that any provision in a Bumble Roofing franchise agreement that designates jurisdiction or venue outside of Illinois is void, according to Section 4 of the Illinois Franchise Disclosure Act. This means that if a dispute arises, it must be resolved within the state of Illinois, ensuring that Illinois franchisees are not forced to litigate in a potentially distant or inconvenient location.
However, the Illinois Addendum also specifies an exception to this rule. While jurisdiction and venue must remain within Illinois, the Bumble Roofing franchise agreement may include a provision for arbitration to occur outside of Illinois. This allows for alternative dispute resolution methods to take place in a different location, potentially offering flexibility in resolving conflicts.
In practical terms, this means that a Bumble Roofing franchisee in Illinois cannot be forced to resolve disputes through lawsuits in another state. However, they could be required to participate in arbitration proceedings outside of Illinois, if the franchise agreement stipulates it. Franchisees should carefully review the dispute resolution section of the franchise agreement and the Illinois Addendum to understand their rights and obligations regarding jurisdiction, venue, and arbitration.