Does the Degree Wellness franchise agreement require franchisees to agree to arbitrate disputes at a location remote from the franchisee's business site?

According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement is governed by Illinois law. The FDD states that any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void, in conformance with Section 4 of the Illinois Franchise Disclosure Act. However, the franchise agreement may provide for arbitration to take place outside of Illinois.

This means that while Degree Wellness franchisees cannot be forced to litigate disputes in a state other than Illinois, they can be required to participate in arbitration outside of Illinois. Arbitration is a form of dispute resolution that is often faster and less expensive than going to court, but it can still require travel and associated expenses for the franchisee.

For a prospective Degree Wellness franchisee, this clause has important implications. While the franchisee cannot be forced to litigate outside of Illinois, they may be required to arbitrate disputes outside of Illinois. It is important to consider the potential costs and inconveniences associated with arbitrating a dispute in a location that is not near the franchisee's business site.