Can a Zoomin Groomin Franchise Agreement require arbitration to take place outside of Illinois?
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 Franchise Disclosure Document, for franchises governed by the Illinois Franchise Disclosure Act, a franchise agreement may include a provision for arbitration to occur outside of Illinois, despite other restrictions on jurisdiction and venue. This means that while Illinois law governs the Franchise Agreement, and any provision designating jurisdiction and venue outside of Illinois is generally void, there is an exception carved out specifically for arbitration.
This is significant for prospective Zoomin Groomin franchisees in Illinois because it means they could be required to participate in arbitration proceedings in a location other than Illinois. Arbitration can involve travel costs, legal fees, and time away from their business, potentially increasing the financial burden of resolving disputes with the franchisor.
It is important for Illinois franchisees to understand this exception and consider the potential implications before signing the Franchise Agreement. They should also be aware of their rights under the Illinois Franchise Disclosure Act, which cannot be waived, and that the conditions for termination or non-renewal of their agreement are subject to specific sections of the Act.