Are there any exceptions to the jurisdiction requirements for 7 Brew franchise disputes, such as actions seeking temporary restraining orders?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite the foregoing, we may bring an action seeking a temporary restraining order or temporary or preliminary injunctive relief, or to enforce an arbitration award, in any federal or state court in the state in which you reside or the Store is located.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, while franchise disputes are generally required to be brought in the state or federal court closest to 7 Brew's principal business address, there are exceptions. 7 Brew retains the right to initiate legal action seeking a temporary restraining order, or temporary or preliminary injunctive relief, or to enforce an arbitration award in any federal or state court located in the franchisee's state of residence or where the 7 Brew store is located. This means that 7 Brew is not bound to the standard jurisdiction for these specific types of actions.
This exception allows 7 Brew to act quickly to protect its interests, such as preventing a franchisee from violating brand standards or misusing confidential information, without the delay of litigating in Arkansas. It also provides 7 Brew with the flexibility to enforce arbitration awards in a location convenient to the franchisee.
For a prospective franchisee, this means that while most legal disputes will be handled in Arkansas, they could face legal action from 7 Brew in their home state or the state where their store is located under certain circumstances. This is a fairly common practice in franchising, as it allows the franchisor to protect its brand and system-wide standards more effectively. Franchisees should be aware of this potential and factor it into their risk assessment.