In Illinois, is a provision in the Focalpoint Coaching franchise agreement that designates jurisdiction and venue outside of Illinois valid?
Focalpoint_Coaching 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 of an agreement 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 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, any provision in the franchise agreement 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 if a Focalpoint Coaching franchisee in Illinois were to bring a legal claim related to the franchise agreement, they would generally not be forced to litigate the matter in a court located outside of Illinois.
However, the FDD clarifies an exception to this rule: the franchise agreement may still provide for arbitration to take place outside of Illinois. Arbitration is a form of alternative dispute resolution where a neutral third party hears the arguments and evidence in a case and renders a decision. While a franchisee might not be required to litigate in an out-of-state court, they could be compelled to participate in arbitration proceedings outside of Illinois.
The FDD also states that 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, in conformance with section 41 of the Illinois Franchise Disclosure Act. Furthermore, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Focalpoint Coaching.