factual

Does the Cicis area development agreement allow for dispute resolution outside of Illinois?

Cicis Franchise · 2025 FDD

Answer from 2025 FDD Document

Section 4 of the Illinois Franchise Disclosure Act provides that any provision in an area development agreement that designates jurisdiction outside the State of Illinois is void.

However, an area development agreement may provide for dispute resolution outside of Illinois.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)

What This Means (2025 FDD)

According to the 2025 Cicis Franchise Disclosure Document, the area development agreement may provide for dispute resolution outside of Illinois, even though Section 4 of the Illinois Franchise Disclosure Act states that any provision designating jurisdiction outside of Illinois is void. This means that while Cicis franchisees are generally protected by Illinois law, they may agree to resolve disputes through methods like arbitration in other locations.

This allowance for dispute resolution outside of Illinois offers Cicis some flexibility in managing legal matters. However, franchisees should carefully consider the implications of agreeing to such terms. Resolving disputes in another state could increase costs and logistical challenges for the franchisee.

It is important for prospective Cicis franchisees to seek legal counsel to fully understand the dispute resolution terms in the area development agreement and how these terms might affect their rights and obligations. Franchisees should also be aware that certain rights under the Illinois Franchise Disclosure Act cannot be waived, regardless of where the dispute is resolved.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.