Can arbitration take place outside of Illinois under the Zoomin Groomin franchise agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
As to franchises governed by the Illinois Franchise Disclosure Act, if any of the terms of the Franchise Disclosure Document or Franchise Agreement are inconsistent with the terms below, the terms below control.
- A. Illinois law governs the Franchise Agreement.
- B. 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.
- C. The conditions under which your Franchise Agreement can be terminated and your rights upon nonrenewal may be affected by Sections 19 and 20 of the Illinois Franchise Disclosure Act.
- D. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision of the Franchise Agreement purporting to bind you to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void.
- E. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- F. Payment of the initial franchise fee shall be deferred until Franchisor has satisfied its preopening obligations to Franchisee and Franchisee has commenced doing business. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, for franchises governed by the Illinois Franchise Disclosure Act, a franchise agreement may allow for arbitration to occur outside of Illinois, despite the fact that Illinois law governs the Franchise Agreement. This means that while Illinois law dictates the terms of the agreement, Zoomin Groomin may include a provision that requires arbitration to take place in a location other than Illinois.
This is an important consideration for prospective Zoomin Groomin franchisees in Illinois because it could mean incurring additional travel costs and logistical challenges if a dispute arises that requires arbitration. Franchisees should carefully review the franchise agreement to understand where arbitration would be held and factor those potential costs into their decision.
It is also important to note that the Illinois Franchise Disclosure Act aims to protect franchisees, and any provision that designates jurisdiction and venue in a forum outside of Illinois is void, except for the arbitration clause. This exception allows Zoomin Groomin to offer arbitration outside of Illinois, potentially influencing the choice of law and legal procedures applied during the arbitration process.