For Churchs Chicken franchisees in Illinois, is a provision designating jurisdiction outside of Illinois enforceable?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- Risk Factors, Cover Page. The following statement is added at the end of the first risk factor on the cover page:
SECTION 4 OF THE ILLINOIS FRANCHISE DISCLOSURE ACT PROVIDES THAT ANY PROVISION IN A FRANCHISE AGREEMENT THAT DESIGNATES JURISDICTION OR VENUE IN A FORUM OUTSIDE OF ILLINOIS IS VOID WITH RESPECT TO ANY CAUSE OF ACTION THAT OTHERWISE IS ENFORCEABLE IN ILLINOIS.
The following statement is added at the end of the second risk factor on the cover page:
NOTWITHSTANDING THE FOREGOING, ILLINOIS LAW SHALL GOVERN THE FRANCHISE AND DEVELOPMENT AGREEMENTS.
- Item 17 shall be amended by the addition of the following:
Any provision in the Development Agreement or the Franchise Agreement that designates jurisdiction or venue in a forum outside of Illinois is void with respect to any action that is otherwise enforceable in Illinois. In addition, Illinois law will govern the Development Agreement and the Franchise Agreement.
In conformance with Section 41 of the Illinois Franchise Disclosure Act any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 50–55)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, provisions in the franchise agreement that designate jurisdiction or venue in a forum outside of Illinois are void with respect to any action that is otherwise enforceable in Illinois. This is in accordance with the Illinois Franchise Disclosure Act. Additionally, Illinois law governs both the Development Agreement and the Franchise Agreement for Churchs Chicken franchises in Illinois.
This means that if a Churchs Chicken franchisee in Illinois has a legal dispute that is enforceable in Illinois, they cannot be forced to litigate or arbitrate the dispute in another state. The case must be heard in Illinois, and Illinois law will apply. This protects the franchisee from having to travel to a distant location or navigate unfamiliar legal systems.
Furthermore, any attempt to circumvent the Illinois Franchise Disclosure Act by requiring a franchisee to waive compliance with Illinois law is also void. This ensures that franchisees cannot be forced to give up their legal rights under Illinois law as a condition of obtaining or maintaining their franchise. This provision aims to protect franchisees from overreaching by the franchisor and ensures a fair legal environment for franchise operations within Illinois.