Does the Illinois amendment to the Pearce Bespoke Franchise Agreement allow franchisees to be required to litigate outside of Illinois?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Illinois amendment to the franchise agreement addresses litigation and choice of law. Specifically, it states that any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, according to the Illinois Franchise Disclosure Act. This means Pearce Bespoke cannot require franchisees to litigate outside of Illinois. However, the agreement may provide for arbitration to take place outside of Illinois.

This amendment is crucial for prospective Pearce Bespoke franchisees in Illinois as it protects them from having to bear the additional costs and burdens of litigating disputes in a foreign jurisdiction. Litigating closer to home can save on travel expenses, legal fees, and the general disruption to their business and personal lives. It also ensures that disputes are resolved under Illinois law, which the franchisee is presumably more familiar with.

It is important to note the exception for arbitration. While litigation must occur in Illinois, Pearce Bespoke may still require arbitration to take place elsewhere. Arbitration can sometimes be a quicker and less expensive alternative to traditional litigation, but franchisees should still carefully consider the implications of agreeing to arbitrate disputes, including the location and governing rules. Franchisees should seek legal counsel to fully understand their rights and obligations under the Illinois Franchise Disclosure Act and the Pearce Bespoke Franchise Agreement.