What is the choice of forum for actions related to the 1 800 Packouts Franchise Agreement?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| 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 20B arbitration or mediation | Not applicable | Not applicable |
| 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). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–53)
What This Means (2025 FDD)
According to the 2025 FDD, any legal actions related to the 1 800 Packouts 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 courts to it. Alternatively, lawsuits can be filed in federal or state courts that have jurisdiction over the county where 1 800 Packouts's principal office is located when the litigation begins. This is subject to applicable state law.
This means that a 1 800 Packouts franchisee may be required to travel to Utah to resolve legal disputes with the company, regardless of where their franchise is located. This could increase the cost of litigation for the franchisee due to travel, lodging, and potentially hiring local counsel.
Choice of forum clauses are common in franchise agreements, as they allow the franchisor to manage legal disputes in a location convenient for them. Prospective franchisees should consider this when evaluating the franchise opportunity and factor in potential travel costs if legal action is necessary. It is important to note that this is subject to applicable state law, which may provide some protections for franchisees.