In the Cicis FDD, what section regarding 'Choice of forum' has been deleted from Item 17.v?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The "Summary" section of Item 17.v. entitled "Choice of forum" is deleted in its entirety.
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- The "Summary" section of Item 17.w. entitled "Choice of law" is deleted in its entirety and replaced with the following:
Except for the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. 1051 et seq.), the United States Arbitration Act (9 U.S.C. 1 et seq.), or other federal law, Illinois law shall apply to and govern the Area Development Agreement and Franchise Agreement.
- The following language is added to the end of the chart in Item 17:
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement or area development agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement or area development agreement may provide for arbitration to take place 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, for franchisees in Illinois, the "Summary" section of Item 17.v, which is entitled "Choice of forum", has been deleted in its entirety. This means that the standard clause in the franchise agreement that dictates where legal disputes must be resolved does not apply to Cicis franchisees in Illinois.
Instead, the FDD states that any provision in a franchise agreement or area development agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, the agreement may still allow for arbitration to occur outside of Illinois. This modification ensures that Illinois franchisees are not forced to litigate disputes in a distant or inconvenient forum.
This change is specific to Illinois due to the Illinois Franchise Disclosure Act. Prospective Cicis franchisees in Illinois should understand that while arbitration may occur out of state, any legal action can be pursued in Illinois, regardless of what the standard franchise agreement might say. This provides a level of protection and convenience for franchisees in the event of a dispute with Cicis.