For a Pearce Bespoke franchise in Illinois, is a provision designating jurisdiction and venue outside of Illinois valid?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
EN SATISFIED AND THE FRANCHISE HAS OPENED FOR BUSINESS IN ACCORDANCE WITH THE HAWAII REVISED STATUTES (HRS) 482E-8 (E).** The parties hereto have duly executed, sealed and delivered this Addendum dated . FRANCHISEE: FRANCHISOR: PEARCE BESPOKE FRANCHISING LLC By: By: Name: Name:
Title: Title:
ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT PURSUANT TO THE ILLINOIS FRANCHISE DISCLOSURE ACT
Illinois law shall apply to and govern 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.
Franchisee's right upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law is void.
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchi
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Illinois law governs the Franchise Agreement. The FDD states that any provision in the franchise agreement 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 Pearce Bespoke franchisees in Illinois cannot be required to litigate disputes arising under the Franchise Agreement outside of Illinois. However, the franchise agreement may provide for arbitration to take place outside of Illinois.
This protection is provided by the Illinois Franchise Disclosure Act, ensuring that Illinois franchisees have the ability to resolve disputes within their own state. This prevents Pearce Bespoke from forcing franchisees to travel to another state for legal proceedings, which could be costly and inconvenient. The Illinois Franchise Disclosure Act aims to protect franchisees by ensuring they are not subjected to unfair or overly burdensome legal requirements.
It is important to note that while jurisdiction and venue provisions mandating out-of-state litigation are void, the franchise agreement can still require arbitration to occur outside of Illinois. Arbitration is a form of alternative dispute resolution that is often faster and less expensive than traditional litigation. Franchisees should carefully review the arbitration provisions in the Franchise Agreement to understand their rights and obligations in the event of a dispute with Pearce Bespoke.
Furthermore, any condition, stipulation, or provision that attempts to bind a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that franchisees cannot be forced to give up their legal rights under Illinois law. Additionally, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on behalf of Pearce Bespoke. This provision supersedes any other term of any document executed in connection with the franchise.