Under what condition can a Bumble Roofing franchise agreement provide for arbitration outside of Illinois, according to the Illinois Franchise Disclosure Act?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Bumble Roofing Franchise Disclosure Document, the Illinois Addendum clarifies the conditions under which arbitration can occur outside of Illinois, in accordance with the Illinois Franchise Disclosure Act. Specifically, while Illinois law generally voids any provision in a franchise agreement that designates jurisdiction or venue outside of the state, there is an exception.
The FDD states that a Bumble Roofing franchise agreement may include a provision for arbitration to take place outside of Illinois, despite the general restriction on out-of-state jurisdiction or venue. This means that if a dispute arises between Bumble Roofing and a franchisee in Illinois, the agreement can stipulate that the arbitration proceedings will be held in a location outside of Illinois.
This is a notable exception, as it allows Bumble Roofing to potentially choose a more favorable or convenient location for arbitration, which could impact the costs and logistics for the franchisee. However, franchisees should be aware that other provisions of the Illinois Franchise Disclosure Act protect their rights, such as the right to not waive compliance with the Act or other Illinois laws.