In Illinois, is a provision in the Bumper Man franchise agreement that designates jurisdiction and venue outside of Illinois valid?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions supersede the Disclosure Document and apply to all franchises offered and sold to either a resident of the State if Illinois or a non-resident who will be operating a franchise in the State of Illinois when the offer is made and accepted within the State of Illinois, pursuant to the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 through 705/44 (the "Act"), as follows:
-
- The Illinois Franchise Disclosure Act governs the franchise agreements.
-
- Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement which designates jurisdiction and venue in a forum outside of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, for franchises offered or sold to Illinois residents or non-residents operating a franchise in Illinois, the Illinois Franchise Disclosure Act governs the franchise agreements.
Specifically, Section 4 of the Illinois Franchise Disclosure Act states that any provision in a Bumper Man franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is considered void. This means that Bumper Man franchisees in Illinois cannot be forced to litigate disputes in another state.
However, the FDD clarifies that a Bumper Man franchise agreement may still include a provision for arbitration to take place outside of Illinois. Therefore, while Illinois franchisees are protected from out-of-state jurisdiction and venue for lawsuits, they may be required to participate in arbitration proceedings in another location.