Where do Craters & Freighters franchisees consent to personal jurisdiction for issues not subject to arbitration?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS
Illinois law governs the Franchise Agreement(s).
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 of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Your rights 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 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Illinois law governs the Franchise Agreement(s). However, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. The franchise agreement may provide for arbitration to take place outside of Illinois.
For a Craters & Freighters franchisee, this means that while the franchise agreement itself is governed by Illinois law, any clause that requires legal disputes to be resolved in a state other than Illinois is not enforceable. This protects franchisees in Illinois from having to travel to a different state to resolve legal issues with Craters & Freighters. However, the agreement can stipulate that arbitration, which is a form of alternative dispute resolution, can occur outside of Illinois.
This clause is particularly important for prospective franchisees in Illinois, as it ensures that they will not be at a disadvantage when resolving disputes with Craters & Freighters. Franchisees should be aware of this provision and understand their rights under Illinois law. It is advisable for franchisees to seek legal counsel to fully understand the implications of this clause and how it may affect their franchise agreement.