For Degree Wellness franchisees in Illinois, is a provision designating jurisdiction and venue outside of Illinois enforceable?

According to Degree Wellness's 2025 Franchise Disclosure Document, Illinois law governs the Franchise Agreement. The FDD specifies that, in conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a Degree Wellness franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. This means that Degree Wellness cannot enforce a clause requiring Illinois franchisees to litigate disputes in another state.

However, the FDD also states that a Degree Wellness franchise agreement may provide for arbitration to take place outside of Illinois. So, while Degree Wellness cannot force a franchisee to resolve disputes in an out-of-state court, they can require arbitration to occur elsewhere. This is a common practice in franchising, as arbitration is often seen as a faster and more cost-effective way to resolve disagreements.

Prospective Degree Wellness franchisees in Illinois should be aware of these provisions and consult with an attorney to understand their rights and obligations under Illinois law. It's important to note that while out-of-state jurisdiction and venue clauses are unenforceable, the arbitration clause may still require franchisees to travel for dispute resolution.