Under the Alloy franchise agreement, what specific court has jurisdiction over disputes if arbitration is not required?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any other claim or any other proceeding involving third parties. In the event a court determines that this limitation on joinder of or class action certification of claims is unenforceable, then this entire commitment to arbitrate will become null and void and the parties must submit all claims to the jurisdiction of the courts.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy FDD, if a court determines that the limitation on joining or class action certification of claims is unenforceable, the commitment to arbitrate becomes void. In this case, the parties must submit all claims to the jurisdiction of the courts. The FDD does not specify which courts would have jurisdiction in this situation.
However, the Alloy FDD does state that a judgment may be entered upon the arbitration award by any state or federal court in the state where Alloy maintains its headquarters or the state where the franchisee's facility is located. The arbitration must take place in the city of Alloy's then-current headquarters, which is currently Roswell, Georgia.
Because the FDD does not specify which courts have jurisdiction if arbitration is not required, prospective Alloy franchisees should ask the franchisor for clarification on this matter. Understanding the specific courts that would have jurisdiction over disputes can help franchisees assess potential legal risks and costs associated with the franchise agreement.