For Goldfish Swim School franchises in Illinois, what happens to any provision in the Franchise Agreement that designates jurisdiction or venue in a forum outside the state?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Sections 23.1 and 23.2 are amended to add: The Franchise Agreement will be governed by Illinois law. Jurisdiction and venue for court litigations shall be in Illinois. Any provision in the Franchise Agreement that designates jurisdiction or venue in a forum outside the State is void, provided that a Franchise Agreement may provide for arbitration in a forum outside of Section 23.6 is deleted in its entirety. 2. void. the United States Code. Any condition, stipulation, or provision purporting to bind any person acquiring any Franchise to waive compliance with any provision of this Act or any other law of this State is This Section shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any of the provisions of this Act, nor shall it prevent the arbitration of any claim pursuant to the provisions of Title 9 of 3. any document executed in connection with the franchise. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee is connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, any provision in the Franchise Agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. This means that if a Goldfish Swim School franchisee in Illinois were to file a lawsuit against the franchisor, the case would need to be litigated in Illinois, regardless of what the standard Franchise Agreement might say. This protects Illinois franchisees by ensuring they can pursue legal action in their home state, which can be more convenient and cost-effective.
However, the FDD stipulates an exception: the Franchise Agreement may still provide for arbitration in a forum outside of Illinois, provided it aligns with Title 9 of the United States Code. Arbitration is a form of dispute resolution that is often faster and less expensive than going to court.
Additionally, any condition, stipulation, or provision that attempts to bind a person acquiring a Goldfish Swim School franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the state is void. This ensures that franchisees cannot be forced to give up their legal rights under Illinois law. Furthermore, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on behalf of the franchisor.