For Burger King franchises offered and sold in Illinois, is a provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois valid?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
AMENDMENT TO BURGER KING® RESTAURANT FRANCHISE AGREEMENT (ENTITY) REQUIRED BY THE STATE OF ILLINOIS Burger King Restaurant
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provisions shall supersede and apply to all BURGER KING franchises offered and sold in the State of Illinois:
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- Illinois law governs the Franchise Agreement.
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- Franchisee's rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 to 705/44 (the "Act").
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- Section 4 of the Act states that "Any provision in a franchise agreement that designates jurisdiction or venue in a forum outside of this State is void, provided that a franchise agreement may provide for arbitration in a forum outside of this State."
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- Any condition, stipulation or provision purporting to bind any person acquiring a franchisee to waive requirements with any provisions of the Act or any other law of the State of Illinois is void. This shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the provisions of the Act, nor shall it prevent the arbitration of any claims pursuant to the provisions of Title IX of the United States Code.
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- The provision in the Franchise Agreement which terminates the franchise upon the bankruptcy of the Franchisee may not be enforceable under Title 11, United States Code, Section 101.
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- Section 18.A of the Franchise Agreement is modified by the insertion of the following at the end of such Section:
Notwithstanding the foregoing, to the extent required by Illinois law, the Franchisor shall provide reasonable notice to the Franchisee with the opportunity to cure any defaults under this Section 18.A, which shall not be less than ten (10) days and in no event shall such notice be required to be more than thirty (30) days.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, for franchises offered and sold in Illinois, a provision in the franchise agreement that designates jurisdiction or venue in a forum outside of Illinois is generally void. However, the franchise agreement may allow for arbitration to occur outside of Illinois. This information is included as an amendment to the franchise agreement for Burger King franchises in Illinois. These stipulations are in accordance with Section 4 of the Illinois Franchise Disclosure Act.
This means that if a Burger King franchisee in Illinois has a legal dispute with the company that is not subject to arbitration, they generally cannot be forced to litigate the matter in a court outside of Illinois. This protects the franchisee by ensuring that legal proceedings can occur in a location that is more convenient and familiar to them. It also means Illinois law will govern the franchise agreement.
It is important for prospective Burger King franchisees in Illinois to understand this amendment and how it affects their rights. While arbitration may still occur out of state, the franchisee is protected from having to litigate in a foreign jurisdiction. Franchisees should consult with an attorney to fully understand their rights under Illinois law and the franchise agreement.