For 1-800-GOT-JUNK? franchisees, under what condition does the franchisor reserve the right to seek relief in a jurisdiction other than Detroit, Michigan?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provision in the Franchise Agreement specifying that litigation between us and you is to take place outside of Michigan is amended to provide instead that litigation will be brought either in the forum designated in the Franchise Agreement or in the state or federal courts located in Detroit, Michigan, and the parties consent to the jurisdiction of those courts; provided, however, that we reserve the right to seek relief in any other jurisdiction as may be necessary or desirable to obtain declaratory, injunctive, or other relief to enforce the provisions and restrictions of the Franchise Agreement.
This amendment will have no effect on the forum or venue of any arbitration proceeding between us and you.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, while the standard venue for litigation between 1-800-GOT-JUNK? and its franchisees is generally in the forum designated in the Franchise Agreement or in state or federal courts located in Detroit, Michigan, 1-800-GOT-JUNK? retains the right to pursue legal action in other jurisdictions under specific circumstances.
Specifically, 1-800-GOT-JUNK? reserves the right to seek relief in any other jurisdiction if it is deemed necessary or desirable to obtain declaratory, injunctive, or other relief aimed at enforcing the provisions and restrictions outlined in the Franchise Agreement. This means that if 1-800-GOT-JUNK? believes a franchisee is violating the agreement and requires immediate legal intervention such as a court order to stop the violating behavior, they can pursue legal action in the jurisdiction where the violation is occurring or where the franchisee is located, rather than being limited to Detroit.
This provision is important for prospective franchisees to understand, as it means they could potentially face legal action from 1-800-GOT-JUNK? in a location other than Detroit, Michigan, depending on the nature of the dispute and the type of relief 1-800-GOT-JUNK? is seeking. However, this amendment does not affect the location or process of any arbitration proceedings between the franchisee and 1-800-GOT-JUNK?.