Does the Craters & Freighters franchise agreement allow for arbitration to take place outside of Illinois?

According to the 2025 Craters & Freighters Franchise Disclosure Document, the franchise agreement may allow for arbitration to occur outside of Illinois, despite Illinois law governing the agreement. The FDD states that any provision designating jurisdiction and venue outside of Illinois is void under the Illinois Franchise Disclosure Act. However, it explicitly notes an exception, clarifying that a franchise agreement can still stipulate that arbitration proceedings may be held outside of the state of Illinois.

For a prospective Craters & Freighters franchisee in Illinois, this means that while they are protected by Illinois law regarding where lawsuits can be filed, they may be required to participate in arbitration in a different location if the franchise agreement specifies it. This could increase costs for the franchisee, as they may need to travel and hire legal representation in the location where the arbitration takes place.

It is important for franchisees to carefully review the franchise agreement and understand the implications of the arbitration clause. Franchisees should consider consulting with an attorney to discuss the potential costs and benefits of agreeing to arbitration outside of Illinois. This is especially important given that the agreement is governed by Illinois law, but arbitration could occur elsewhere, potentially creating a conflict or additional expense.