For Cinnaholic franchises in Illinois, what happens to franchise agreement provisions that designate jurisdiction and venue outside of Illinois?

According to the 2025 Cinnaholic Franchise Disclosure Document, if a Cinnaholic franchise is offered or sold to a resident of Illinois, or a non-resident who will be operating a Cinnaholic franchise in Illinois, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is considered void. This is in accordance with Section 4 of the Illinois Franchise Disclosure Act.

This means that Cinnaholic franchisees in Illinois cannot be forced to resolve legal disputes in a court located outside of Illinois. This provision protects franchisees from having to travel to a distant location to address legal matters, which could be a significant financial and logistical burden. However, the franchise agreement may still allow for arbitration to take place outside of Illinois, which is a common alternative dispute resolution method.

This addendum to the franchise agreement ensures that Cinnaholic franchisees operating in Illinois are afforded the protections of the Illinois Franchise Disclosure Act. It is important for prospective franchisees to carefully review the franchise agreement and any addenda to understand their rights and obligations under the law.