Regarding jurisdiction and venue for Buona's Area Development Agreement, what does the Illinois Franchise Disclosure Act stipulate about forum designation outside of Illinois?

According to Buona's 2025 Franchise Disclosure Document, specifically the addendum to the Area Development Agreement for the state of Illinois, Section 4 of the Illinois Franchise Disclosure Act addresses jurisdiction and venue. It states that any provision within the area development agreement that designates jurisdiction and venue in a forum outside of Illinois is considered void. This means that if Buona includes a clause requiring legal disputes to be resolved in a state other than Illinois, that clause is not enforceable under Illinois law.

However, the addendum clarifies an exception to this rule. While jurisdiction and venue cannot be designated outside of Illinois, the area development agreement can still stipulate that arbitration may occur outside of the state. Arbitration is a form of alternative dispute resolution where a neutral third party helps resolve the conflict. This provides Buona with some flexibility in choosing a location for arbitration proceedings, even if it's not within Illinois.

This stipulation protects developers operating in Illinois by ensuring that they are not forced to litigate disputes in a potentially distant or inconvenient forum. The inclusion of this addendum demonstrates Buona's compliance with Illinois franchise law and provides transparency to potential developers about their legal rights and obligations within the state. Developers should carefully review this addendum and understand the implications for dispute resolution under the Area Development Agreement.