For Cicis franchises in Illinois, is a provision designating jurisdiction and venue outside of Illinois in a franchise agreement or area development agreement valid?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
llowing:
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.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, any provision in a franchise agreement or area development agreement that designates jurisdiction and venue in a forum outside of Illinois is void, as stated in Section 4 of the Illinois Franchise Disclosure Act. This means that Cicis franchisees in Illinois cannot be forced to litigate disputes in another state. However, the franchise agreement or area development agreement may still provide for arbitration to take place outside of Illinois.
This protection is further reinforced by the Illinois Franchise Disclosure Act, which states that any condition, stipulation, or provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void. This ensures that franchisees cannot unknowingly or unwillingly give up their rights under Illinois law.
Cicis provides a rider to the franchise agreement for use in Illinois, which addresses these specific points of Illinois law. This rider ensures that the franchise agreement complies with Illinois regulations and protects the rights of Illinois franchisees. The rider also states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under Illinois franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Cicis.