Which courts have jurisdiction over 1 800 Packouts Franchise Agreement disputes?
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). |
| w. | Choice of law 22B | 17.B | Utah law governs (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 1 800 Packouts' 2025 Franchise Disclosure Document, any legal actions or disputes must be initiated in specific courts. The FDD states that all actions must be brought in federal or state courts located in Utah County, Utah, or the most proximate thereto. Alternatively, lawsuits can be filed in federal or state courts with jurisdiction over the county in which 1 800 Packouts' principal office is located at the time the litigation commences. This is all subject to applicable state law.
This "choice of forum" clause means a franchisee may have to travel to Utah to resolve disputes, which could increase legal costs. It is common for franchise agreements to specify a particular jurisdiction for dispute resolution, often the location of the franchisor's headquarters.
Prospective franchisees should be aware of this requirement and factor in potential travel and legal expenses if a dispute arises with 1 800 Packouts. It is important to consult with a legal professional to understand the implications of this clause and how it may affect their rights as a franchisee, especially considering the clause is subject to applicable state law.