How is Article 18.G of the Mrcool Franchise Agreement amended regarding choice of law, mediation, arbitration, and jurisdiction?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
amended by the addition of the following statement added after the end of the last sentence of Article 18.F. of the Franchise Agreement and Section 7.5 of the Development Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides that 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 in a venue outside Illinois.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Article 18.G of the Franchise Agreement, which addresses "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," is amended by adding a statement specifying that Illinois law governs the agreements between the parties if the franchisee is in Illinois. This amendment acknowledges the Illinois Franchise Disclosure Act.
Specifically for Illinois franchisees, the amendment notes that any provision in the Franchise Agreement designating jurisdiction or venue outside of Illinois is void. However, the agreement may still provide for arbitration in a venue outside Illinois. This means that while Mrcool can require arbitration, it cannot force an Illinois franchisee to litigate disputes in a court outside of Illinois.
This amendment ensures that Mrcool franchisees in Illinois are protected by Illinois law regarding jurisdiction and venue, while still allowing for the possibility of arbitration. Franchisees in other states may have different requirements.