According to Ledgers' 2025 Franchise Disclosure Document, for franchises governed by the Illinois Franchise Disclosure Act, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void. This means that if a Ledgers franchisee in Illinois were to have a legal dispute with the company that was not subject to arbitration, the case would have to be heard in Illinois, regardless of what the franchise agreement says about out-of-state venues.

However, the FDD clarifies an important exception: the franchise agreement may still provide for arbitration to take place outside of Illinois. So, while Ledgers cannot force an Illinois franchisee into an out-of-state court, they can require arbitration to occur elsewhere. Arbitration is a common method of dispute resolution in franchising, where a neutral third party helps mediate or decide the outcome of a disagreement.

This protection is in place because Illinois law aims to protect franchisees from being subjected to unfair legal burdens. It ensures that Illinois franchisees have the ability to resolve disputes within their own state, avoiding the added expense and inconvenience of traveling to another jurisdiction. Prospective Ledgers franchisees in Illinois should be aware of this provision and consult with legal counsel to fully understand their rights under the Illinois Franchise Disclosure Act.