Does the Illinois addendum permit Dog Haus Franchise Agreements to provide for arbitration outside of Illinois, even if it voids jurisdiction or venue outside the state?

According to Dog Haus's 2025 Franchise Disclosure Document, the Illinois addendum addresses the issue of arbitration and jurisdiction. Specifically, it states that while any provision in the Franchise Agreement that designates jurisdiction or venue outside of Illinois is void, the Franchise Agreement may still provide for arbitration outside of Illinois. This means that Dog Haus can include a clause requiring arbitration to take place in a location outside of Illinois, even though Illinois law governs the agreement.

For a prospective Dog Haus franchisee in Illinois, this is an important distinction. While they cannot be forced to litigate a dispute in a non-Illinois court, they can be compelled to participate in arbitration outside of the state. Arbitration typically involves a less formal process than court litigation, but it can still require significant time and expense to travel to the arbitration location and present a case. The franchisee should consider the potential costs and inconveniences of out-of-state arbitration when evaluating the franchise opportunity.

This provision aims to balance the franchisee's rights under Illinois law with Dog Haus's desire to have a consistent dispute resolution process across all franchise locations. Franchisees should seek legal counsel to fully understand the implications of the arbitration clause and how it might affect their rights in the event of a dispute with Dog Haus.