Where will litigation between Kidokinetics and the franchisee be commenced and maintained in Illinois?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
To the extent that the Franchise Agreement would otherwise violate Illinois law, such Agreement is amended by providing that all litigation by or between you and us, arising directly or indirectly from the Franchise relationship, will be commenced and maintained in the state courts of Illinois or, at our election, the United States District Court for Illinois, with the specific venue in either court system determined by appropriate jurisdiction and venue requirements, and Illinois law will pertain to any claims arising under the Illinois Franchise Disclosure Act.
Item 17.v, Choice of Forum, of the FDD is revised to include the following: "provided, however, that the foregoing shall not be considered a waiver of any right granted upon you by Section 4 of the Illinois Franchise Disclosure Act."
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee is located in Illinois, any litigation between the franchisee and Kidokinetics arising from their franchise relationship must be initiated and maintained in the state courts of Illinois. However, Kidokinetics has the option to instead pursue litigation in the United States District Court for Illinois. The specific venue within either court system will be determined based on jurisdiction and venue requirements. Furthermore, Illinois law will govern any claims arising under the Illinois Franchise Disclosure Act.
This stipulation is important for prospective Kidokinetics franchisees in Illinois as it ensures that any legal disputes will be resolved within the state, potentially offering more convenience and familiarity with local laws. It also clarifies that the Illinois Franchise Disclosure Act will be the governing law for claims arising under it, regardless of any conflicting choice of law provisions in the franchise agreement.
It is also important to note that Section 41 of the Illinois Franchise Disclosure Act states that any condition, stipulation, or provision that attempts to waive compliance with any provision of the Act or any other law of the State is void. The Franchise Agreement is amended accordingly. This protects the franchisee from unknowingly waiving their rights under Illinois law.