Does the Alloy franchise agreement require both parties to consent to the jurisdiction of the specified court?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- The first sentence of Section 10.H is deleted in its entirety, and the following is substituted:
Subject to Section 10.N, any cause of action, claim, suit or demand allegedly arising from or related to the terms of this Agreement or the relationship of the parties must be brought in the Illinois federal or state court for the Designated Area in which you are located.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the franchise agreement does not generally require both parties to consent to the jurisdiction of a specified court. However, there is an addendum for franchises sold in Illinois that modifies the standard agreement.
Specifically, for Illinois franchisees, any legal action related to the Area Development Agreement or the relationship between Alloy and the franchisee must be brought in the Illinois federal or state court for the Designated Area where the franchisee is located. This clause replaces the original sentence in Section 10.H of the agreement, indicating a specific jurisdictional requirement for Illinois franchisees.
This means that if an Alloy franchisee is located in Illinois and has a dispute with Alloy related to the Area Development Agreement, they are required to litigate the matter in Illinois federal or state court. For prospective franchisees outside of Illinois, the FDD does not specify that both parties must consent to the jurisdiction of a specific court.