In Illinois, is a Hardees franchise agreement provision that designates jurisdiction or venue outside of Illinois valid?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with Section 4 of the Illinois Franchise Disclosure Act, 815 ILCS 705/1-44 (West 2016), any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, if you are opening a Hardees franchise in Illinois, specific Illinois state laws will take precedence over certain standard franchise agreement terms.
Specifically, the addendum for Illinois franchisees states that any clause within the franchise agreement that mandates jurisdiction or venue outside of Illinois is considered void under Section 4 of the Illinois Franchise Disclosure Act. This means that if a franchisee were to bring a cause of action that is otherwise enforceable in Illinois, they would not be forced to litigate it in another state.
However, it is important to note that the franchise agreement may still include a provision that requires arbitration to occur outside of Illinois. Franchisees should consult with a legal professional to fully understand the implications of these clauses and how they apply to their specific circumstances.