Where must all actions pertaining to the 1 800 Packouts Franchise Agreement be brought?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | employed during the past 12 months by us, our affiliates, or our franchisees. | ||
| s. Modification of the 18B agreement | 18.B | No modifications unless written agreement signed by both parties. | |
| t. Integration/merger 19B clause | 18.A | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises made outside of the disclosure document and Franchise Agreement may not be enforceable. | |
| u. Dispute resolution by | Not applicable | Not applicable | |
| 20B | |||
| arbitration or | |||
| mediation | |||
| v. v. Choice of forum 21B | 17.A | All actions must be brought in federal or state courts located in Utah County, Utah (or the most proximate thereto) or federal or state courts with jurisdiction over the county in which our principal office is located at the time any litigation commences (subject to applicable state law). | |
| w. Choice of law | 17.B | Utah law governs (subject to applicable state law). | |
| 22B |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–53)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, any legal actions related to the franchise agreement must be initiated in specific courts. All actions must be brought in federal or state courts located in Utah County, Utah, or the closest possible courts. Alternatively, actions can be brought in federal or state courts that have jurisdiction over the county where 1 800 Packouts' principal office is located at the time the litigation begins. These stipulations are subject to applicable state laws, which may provide additional or alternative requirements depending on the franchisee's location.
This requirement means that a 1 800 Packouts franchisee may be required to travel to Utah to resolve legal disputes with the franchisor, regardless of where their franchise is located. This could increase the cost of litigation due to travel, lodging, and potentially hiring local counsel. Franchisees should be aware of this forum selection clause and consider the potential financial and logistical implications before entering into the franchise agreement.
It is common for franchise agreements to include forum selection clauses that require disputes to be resolved in a specific jurisdiction, often the location of the franchisor's headquarters. Prospective franchisees should carefully review this clause and understand its implications, including the potential costs and inconvenience of litigating in a distant forum. Consulting with an attorney experienced in franchise law is advisable to fully understand the legal ramifications.