What specific federal statute regarding jurisdiction must be present for controversies between All Team Football Club (ATFC) and the franchisee to be filed in Federal District Court in Tampa, FL?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- Litigation. Except as otherwise provided in this Agreement, all controversies, disputes or claims between ATFC and USER arising from this Agreement or the franchise relationship set forth in this Agreement shall be filed in the Federal District Court in Tampa, FL when the grounds set forth in 28 U.S.C.§ 1332 are present. Both parties and each guarantor of this Agreement irrevocably submit to the jurisdiction of this court and waive any objection to the jurisdiction or venue in this court. In the event that the above-referenced federal court does not have jurisdiction over the dispute, the parties shall submit to binding arbitration as provided below.
Notwithstanding the foregoing, any claims ATFC has relating to its trademarks, service marks, patents, or copyrights; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties shall be brought in either federal or state courts in Tampa, FL. Both parties agree to submit to the jurisdiction of the state and federal court in Tampa, FL.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, controversies, disputes, or claims between All Team Football Club (ATFC) and the franchisee arising from the franchise agreement must be filed in the Federal District Court in Tampa, FL, when the grounds set forth in 28 U.S.C. § 1332 are present. This statute defines the jurisdiction of U.S. district courts in cases where there is diversity of citizenship between the parties (i.e., they are citizens of different states) and the amount in controversy exceeds $75,000. Both parties and any guarantors to the agreement must irrevocably submit to the jurisdiction of this court and waive any objection to the jurisdiction or venue.
However, if the federal court does not have jurisdiction over the dispute, the parties must submit to binding arbitration. This means that if the requirements of 28 U.S.C. § 1332 are not met, such as if the parties are not diverse in citizenship or the amount in controversy is not high enough, the dispute will be resolved through arbitration rather than in federal court.
Notably, certain claims by All Team, such as those relating to trademarks, service marks, patents, copyrights, leases, or requests for injunctive relief, can be brought in either federal or state courts in Tampa, FL, regardless of 28 U.S.C. § 1332. This provides All Team with the flexibility to choose the forum for these specific types of disputes. The franchisee should be aware of these conditions and understand the implications for dispute resolution under the franchise agreement.