For City Publications franchises in Illinois, is a franchise agreement provision designating jurisdiction and venue outside of Illinois valid?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Franchisees' right upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside the State of Illinois is void, as stated in conformance with Section 4 of the Illinois Franchise Disclosure Act. This means that if a City Publications franchisee in Illinois were to have a legal dispute with the franchisor related to the franchise agreement, they generally could not be forced to litigate the matter in a court outside of Illinois.
However, the FDD clarifies an exception to this rule. A City Publications franchise agreement may include a provision that allows for arbitration to take place outside of Illinois. Arbitration is a form of alternative dispute resolution where a neutral third party hears the dispute and makes a decision.
The Illinois Franchise Disclosure Act also 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 protects the franchisee's rights under Illinois law.