factual

Does the Monicals Pizza agreement allow for arbitration to take place outside of Illinois?

Monicals_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

  • Illinois law governs the Franchise Agreement.
  • 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.

Source: Item 23 — RECEIPTS (FDD pages 46–257)

What This Means (2025 FDD)

According to Monicals Pizza's 2025 Franchise Disclosure Document, the franchise agreement may allow for arbitration to occur outside of Illinois. However, Illinois law governs the Franchise Agreement, and any provision that designates jurisdiction and venue in a forum outside of Illinois is void, according to Section 4 of the Illinois Franchise Disclosure Act.

This means that while the agreement might contain language suggesting arbitration could happen elsewhere, Illinois law takes precedence. As a result, any clause mandating a location outside of Illinois for dispute resolution would be unenforceable.

Prospective franchisees should be aware of this protection under Illinois law. It ensures that legal proceedings or arbitrations related to the franchise are likely to take place within the state, which could reduce travel costs and logistical challenges for franchisees based in Illinois. Franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.