What governing law applies to matters relating to arbitration for Deer Solution?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois law governs the Franchise Agreement.
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.
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota Franchisees, North Dakota law shall apply."
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the governing law for arbitration depends on the franchisee's location. For franchisees in Illinois, Illinois law governs the Franchise Agreement. For franchisees in North Dakota, North Dakota law applies to the franchise agreement.
Specifically, the Illinois amendment states that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of the state. The North Dakota amendment specifies that covenants requiring franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable. Additionally, for North Dakota franchisees, North Dakota law shall apply to Article 18 of the Franchise Agreement, which likely covers dispute resolution and legal matters.
These stipulations protect franchisees by ensuring that their local state laws take precedence in legal disputes, especially concerning jurisdiction, venue, and certain waivers. This means a Deer Solution franchisee will have the benefit of their local state laws, which may offer greater protection than if disputes were governed by laws outside their state. Prospective franchisees should consult with a legal professional to fully understand the implications of these state-specific amendments and how they affect their rights and obligations under the Franchise Agreement.