What does Section 4 of the Illinois Franchise Disclosure Act state regarding jurisdiction outside of Illinois in the Cicis Franchise Agreement?

According to Cicis's 2025 Franchise Disclosure Document, Section 4 of the Illinois Franchise Disclosure Act addresses the designation of jurisdiction in franchise agreements. Specifically, it states that any provision within a Cicis franchise agreement that designates jurisdiction outside of the State of Illinois is considered void. This means that Cicis cannot force a franchisee to litigate disputes in a state other than Illinois.

However, the FDD clarifies an important exception to this rule. While jurisdiction cannot be designated outside of Illinois, the franchise agreement may still allow for dispute resolution, such as arbitration, to occur outside of Illinois. This means that Cicis and the franchisee could agree to resolve disputes through arbitration in another state without violating the Illinois Franchise Disclosure Act.

This distinction is crucial for prospective Cicis franchisees in Illinois. While they cannot be forced to litigate in another state, they should carefully consider any arbitration clauses in the franchise agreement that might require them to participate in arbitration proceedings outside of Illinois. Franchisees should seek legal counsel to fully understand the implications of these clauses.