Can the Deer Solution Franchisor demand arbitration?
Deer_Solution 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 of the State of Illinois is void. However, a Franchise Agreement may provide for arbitration to take place outside of Illinois.
- D. Any provision in the Franchise Agreement requiring a franchisee to agree to the arbitration or mediation of disputes at a location that is remote from the site of the franchisee's business has been determined to be unfair, unjust, and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The site of arbitration or mediation must be agreeable to all parties and may not be remote from the franchisee's place of business.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, whether Deer Solution can enforce arbitration depends on the state where the franchise operates.
For Illinois franchisees, the FDD states that while the franchise agreement cannot designate jurisdiction and venue outside of Illinois, it can stipulate that arbitration takes place outside of the state. This means Deer Solution could potentially require arbitration in a location other than Illinois.
For North Dakota franchisees, the FDD indicates that any requirement for arbitration or mediation at a location remote from the franchisee's business is considered unfair. The arbitration site must be agreeable to all parties and not remote from the franchisee's place of business. Similarly, for Washington franchisees, the FDD specifies that in any arbitration or mediation involving a franchise purchased in Washington, the site will be either in Washington, a place mutually agreed upon, or as determined by the arbitrator or mediator.
Therefore, prospective Deer Solution franchisees should carefully review the specific amendment for their state to understand the enforceability and location of arbitration proceedings. They should also consult with a legal professional to fully understand their rights and obligations regarding dispute resolution.