For Coffee News franchises in Illinois, is a provision designating jurisdiction and venue outside of Illinois valid?

According to Coffee News' 2025 Franchise Disclosure Document, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void. This is in accordance with Section 4 of the Illinois Franchise Disclosure Act. This addendum applies specifically to franchisees operating in Illinois.

This means that if a Coffee News franchisee in Illinois has a legal dispute with the franchisor that results in a lawsuit, the case must be heard in Illinois, regardless of what the franchise agreement might say about out-of-state venues. This protects the franchisee by ensuring they will not have to travel to another state to resolve legal issues.

However, the FDD specifies that the franchise agreement may still provide for arbitration to take place outside of Illinois. Arbitration is a form of alternative dispute resolution where a neutral third party hears both sides of a dispute and makes a decision. While the location of a lawsuit is restricted to Illinois, Coffee News franchisees may be required to participate in arbitration outside of Illinois.