When more than 1,000 coordinated arbitration demands on substantially the same facts are filed by counsel-represented individuals and no substantive arbitration ruling has yet been issued, either party may unilaterally opt out of arbitration and redirect disputes to state court in DuPage County, Illinois or the U.S. District Court for the Northern District of Illinois.
This analysis describes what McDonald's's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes a procedural threshold at which the mandatory arbitration requirement can be unilaterally waived by either party, redirecting mass coordinated claims to Illinois courts. The opt-out right belongs to both McDonald's and individual claimants once the threshold is met, subject to the requirement that claimants be represented by the same or coordinated counsel.
Interpretive note: The enforceability of the coordinated-counsel condition and the unilateral opt-out right may vary by jurisdiction and depends on how courts in the applicable forum interpret the FAA and state contract law requirements for mutual assent.
Under this clause, if more than 1,000 coordinated arbitration demands meeting the stated criteria are filed, both McDonald's and individual users acquire the right to redirect their disputes from AAA arbitration to Illinois state or federal court. The agreement specifies DuPage County, Illinois or the Northern District of Illinois as the exclusive court venues in this scenario.
Cross-platform context
See how other platforms handle Mass Arbitration Opt-Out to Illinois Courts and similar clauses.
Compare across platforms →"if more than 1,000 arbitration demands are filed against McDonald's relating to substantially the same business decision or underlying facts by individuals who followed the procedures set forth in subsections 3 and 5 above and are represented by the same counsel or coordinated counsel, and if no substantive ruling has been made in an arbitration between you and McDonald's relating to that decision or those facts, then both you and McDonald's have the unilateral right to opt out of this arbitration provision and have your dispute heard in state court in DuPage County, Illinois or in the United States District Court for the Northern District of Illinois by sending a written notice to the other party.Excerpt from McDonald's's Terms of Use
1) REGULATORY LANDSCAPE: This provision operates within the FAA framework and may require evaluation under state law regarding whether a unilateral opt-out right in an arbitration agreement is consistent with the mutual consideration requirements applicable …
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Get the research letter
Companies change their terms quietly. We read every version and catch what actually changed. One email a week on the changes that matter and what they mean.
This provision establishes a procedural threshold at which the mandatory arbitration requirement can be unilaterally waived by either party, redirecting mass coordinated claims to Illinois courts. The opt-out right belongs to both McDonald's and individual claimants once the threshold is met, subject to the requirement that claimants be represented by the same or coordinated counsel.
Under this clause, if more than 1,000 coordinated arbitration demands meeting the stated criteria are filed, both McDonald's and individual users acquire the right to redirect their disputes from AAA arbitration to Illinois state or federal court. The agreement specifies DuPage County, Illinois or the Northern District of Illinois as the exclusive court venues in this scenario.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by McDonald's.