Can the Canine Dimensions franchise agreement provide for arbitration to take place outside of Illinois?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to the 2025 Canine Dimensions Franchise Disclosure Document, the franchise agreement may stipulate that arbitration occur outside of Illinois, despite Illinois law governing the agreement. This is outlined in the addendum required by the state of Illinois. However, any provision designating jurisdiction and venue in a forum outside of Illinois is considered void, except for the arbitration clause.
This means that while Canine Dimensions can require arbitration to take place in a location other than Illinois, franchisees based in Illinois cannot be forced to litigate in another state. This addendum ensures that franchisees are not subjected to unfair legal burdens by having to travel out of state for legal proceedings, except in the case of arbitration.
It is important for prospective franchisees in Illinois to understand this distinction. While they may be required to participate in arbitration outside of Illinois, they retain the right to have other legal matters addressed within the state. This provision aims to balance the franchisor's need for a consistent dispute resolution process with the franchisee's protection under Illinois law.