In Illinois, is a provision in the C12 Group franchise agreement that designates jurisdiction and venue outside of Illinois valid?

According to the 2025 FDD, Illinois has specific regulations regarding franchise agreements. For C12 Group franchisees in Illinois, any provision within the franchise agreement that dictates jurisdiction and venue in a location outside of Illinois is considered void. This means that if a dispute arises and leads to litigation, the case must be heard within the state of Illinois, regardless of what the standard C12 Group franchise agreement might state.

However, the Illinois addendum clarifies an exception to this rule. While jurisdiction and venue must remain in Illinois, the franchise agreement can still stipulate that arbitration may occur outside of Illinois. Arbitration is a form of alternative dispute resolution where a neutral third party helps mediate a resolution. This distinction allows C12 Group to potentially conduct arbitration proceedings in a location that may be more convenient or suitable for the company, while still ensuring that any formal legal proceedings take place within Illinois.

This provision protects C12 Group franchisees in Illinois by ensuring they are not forced to litigate disputes in distant or inconvenient locations. It aligns with the Illinois Franchise Disclosure Act, which aims to safeguard the rights of franchisees within the state. Prospective franchisees should be aware of this addendum and understand their rights under Illinois law when entering into a franchise agreement with C12 Group.