Under the Illinois Amendment, are provisions in the Engel & Volkers franchise agreement that designate jurisdiction and venue outside of Illinois valid?

According to the 2025 Engel & Volkers Franchise Disclosure Document, the Illinois Amendment addresses the validity of provisions related to jurisdiction and venue. Specifically, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is considered void, aligning with Section 4 of the Illinois Franchise Disclosure Act. This means that if a dispute arises and the Engel & Volkers franchise agreement stipulates that the legal proceedings must occur outside of Illinois, that provision will not be enforceable in Illinois.

This amendment is crucial for prospective Engel & Volkers franchisees in Illinois as it ensures that they will not be forced to litigate disputes in a potentially distant or inconvenient location. The Illinois Franchise Disclosure Act aims to protect franchisees by ensuring that certain rights, such as those related to termination and non-renewal, cannot be waived. This protection extends to the legal venue, ensuring that Illinois franchisees can resolve disputes within their own state.

It is important for franchisees to understand that this amendment specifically applies to franchises sold in Illinois and is intended to comply with Illinois statutes and regulations. Franchisees should carefully review the Illinois Amendment in conjunction with the franchise agreement to fully understand their rights and obligations under Illinois law. This ensures that Engel & Volkers franchisees operating in Illinois are afforded the protections mandated by Illinois law, particularly regarding legal proceedings and dispute resolution.