For Dryject franchises in Illinois, can the franchise agreement designate jurisdiction and venue in a forum outside of Illinois?
Dryject 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.
Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if a franchisee is a resident of Illinois or locates their franchise in Illinois, the franchise agreement cannot designate jurisdiction and venue in a forum outside of the state. This is specified in the Illinois Addendum to the Franchise Agreement. This addendum takes effect when the franchise agreement is executed by both Dryject and the franchisee.
This provision is in place to protect Illinois franchisees from having to resolve disputes in potentially distant or inconvenient locations. However, the FDD specifies that the franchise agreement may still provide for arbitration to take place outside of Illinois, which is an important exception to the rule.
This means that while Dryject cannot force an Illinois franchisee to litigate a case outside of Illinois, they can require arbitration to occur elsewhere. Arbitration is a form of alternative dispute resolution that is often faster and less expensive than going to court, but it may have different rules and procedures. Prospective franchisees should understand the distinction between litigation and arbitration, and consider the implications of agreeing to out-of-state arbitration.
It is also important to note that any condition, stipulation, or provision that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that Illinois franchisees retain the full protection of Illinois law, regardless of what the franchise agreement may state.