Can arbitration for a Buns On Fire franchise agreement take place outside of Illinois?

According to the 2025 Buns On Fire Franchise Disclosure Document, the Illinois Addendum specifies that while Illinois law governs franchise agreements for that state, a provision designating jurisdiction and venue outside of Illinois is void. However, the addendum explicitly states that a Buns On Fire franchise agreement may provide for arbitration to occur outside of Illinois, even for agreements within Illinois. This means that franchisees in Illinois could be required to participate in arbitration proceedings in another state if the franchise agreement stipulates it.

This clause is important for prospective Buns On Fire franchisees in Illinois because it clarifies that while they cannot be forced to litigate disputes outside of Illinois, they can be compelled to arbitrate outside of the state. Arbitration can sometimes be more costly or less convenient depending on the location and the selected arbitrator. Franchisees should carefully review the franchise agreement to understand where arbitration would be required to take place and consider the potential costs and logistical challenges.

For franchisees in Washington, the FDD states that in any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator. This provides franchisees in Washington with some protection regarding the location of arbitration proceedings.

Prospective franchisees should consult with legal counsel to fully understand the implications of these clauses and how they might affect their rights and obligations under the franchise agreement. It is crucial to be aware of the potential for out-of-state arbitration and to assess the potential impact on their business and personal resources.