For a Caring Transitions franchisee in Illinois, what is the effect of a franchise agreement provision that designates jurisdiction or venue outside of Illinois for a cause of action enforceable under the Illinois Franchise Disclosure Act?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
closure Act.
Any provision in the franchise agreement that requires the application of the laws of another state is void with respect to a claim otherwise enforceable under the Illinois Franchise Disclosure Act.
Any provision in the franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void with respect to any cause of action which otherwise is enforceable under the Illinois Franchise Disclosure Act.
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, any provision in the franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void with respect to any cause of action which otherwise is enforceable under the Illinois Franchise Disclosure Act. This means that if an Illinois Caring Transitions franchisee has a legal claim against the franchisor that is enforceable under the Illinois Franchise Disclosure Act, the franchisee is not required to pursue that claim in a jurisdiction or venue outside of Illinois, even if the franchise agreement states otherwise. This provision protects the franchisee's right to have their case heard in Illinois.
This protection is further reinforced by the Illinois Addendum to the Franchise Agreement, which explicitly states that any provision in the agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void with respect to a claim otherwise enforceable under the Illinois Franchise Disclosure Act. This addendum is designed to ensure that the franchise agreement complies with Illinois law and that the franchisee's rights under the Illinois Franchise Disclosure Act are protected.
In practical terms, this means that an Illinois Caring Transitions franchisee can bring a lawsuit against the franchisor in Illinois if the claim is based on a violation of the Illinois Franchise Disclosure Act, regardless of what the franchise agreement says about where lawsuits must be filed. This provides a significant benefit to the franchisee, as they will not have to travel to another state to pursue their legal rights. This also helps ensure that disputes are resolved under Illinois law, which is designed to protect franchisees.