For Chem Dry franchisees in Illinois, is a franchise agreement provision designating jurisdiction and venue outside of Illinois valid?

According to Chem Dry's 2024 Franchise Disclosure Document, for franchisees in Illinois, a provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void. This means that if a Chem Dry franchisee in Illinois has a legal dispute with Chem Dry (excluding arbitration, which may occur out of state), the case must be heard in Illinois, regardless of what the franchise agreement might say. This protects Illinois franchisees from having to travel to another state to resolve legal issues, potentially saving them significant time and money.

However, the FDD also states that a franchise agreement may provide for arbitration to take place outside of Illinois. Arbitration is a form of alternative dispute resolution where a neutral third party hears both sides of a dispute and makes a decision. While the location of litigation is restricted to Illinois, Chem Dry retains the right to require arbitration to occur elsewhere.

This provision is included in an addendum specifically for Illinois franchisees, indicating that it is intended to comply with Illinois statutes and regulations. This addendum modifies certain sections of the standard franchise agreement to align with Illinois law, providing additional protections and clarity for franchisees operating in that state.