Can a Pearce Bespoke franchise agreement require arbitration to take place outside of Illinois?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the franchise agreement may allow for arbitration to occur outside of Illinois. The FDD includes an addendum to the Franchise Disclosure Document pursuant to the Illinois Franchise Disclosure Act, which states that while any provision designating jurisdiction and venue outside of Illinois is void, a franchise agreement may still provide for arbitration outside of Illinois.

This means that if a dispute arises between a Pearce Bespoke franchisee in Illinois and the franchisor, the franchisee may be required to participate in arbitration proceedings in a location outside of Illinois, even though they cannot be forced to litigate a cause of action outside of Illinois. This could potentially increase costs for the franchisee, as they may need to travel and hire legal representation in another state.

It is important for prospective franchisees in Illinois to carefully review the franchise agreement and any addenda related to Illinois law to understand their rights and obligations regarding dispute resolution. They should also consult with an attorney to fully understand the implications of the arbitration clause and how it may affect them in the event of a dispute with Pearce Bespoke.