edge_case

For Dryject franchises in Illinois, is it permissible for the franchise agreement to provide for arbitration to take place outside of Illinois?

Dryject Franchise · 2025 FDD

Answer 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.

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to the 2025 Dryject Franchise Disclosure Document, for franchises in Illinois, the franchise agreement may provide for arbitration to occur outside of Illinois. However, any provision that designates jurisdiction and venue in a forum outside of Illinois is void, as stated in conformance with Section 4 of the Illinois Franchise Disclosure Act.

This means that while Dryject can include a clause requiring arbitration to take place in another state, the franchisee is not obligated to litigate disputes outside of Illinois. This addendum is specifically for franchisees who are residents of Illinois or who locate their franchises in Illinois.

It is important for prospective Dryject franchisees in Illinois to understand this addendum, as it clarifies their rights regarding dispute resolution and ensures that they are not forced to litigate or arbitrate outside of their home state. This provision aims to protect franchisees from potentially unfair or burdensome legal proceedings in distant locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.