Under the Anago Guaranty, what specific court has jurisdiction over disputes?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby irrevocably submit to the jurisdiction of the (enter applicable court in Your State) (or its successor) in and for Xxxx County, State, and any appellate court thereof in any action or proceeding arising out of or relating, directly or indirectly, to the Guaranty.
You hereby irrevocably waive, to the fullest extent You may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding and any right to jurisdiction on account of Your place of residence or domicile.
You agree that a final judgment in any such action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the specific court that has jurisdiction over disputes arising from the Guaranty depends on whether the dispute involves the Unit Franchise Agreement or the Subfranchisor Agreement.
For disputes related to the Unit Franchise Agreement, the Guarantor submits to the jurisdiction of the court in their state and county. Specifically, the language states that jurisdiction lies with "the (enter applicable court in Your State) (or its successor) in and for Xxxx County, State, and any appellate court thereof". This means that if a dispute arises concerning the Guaranty related to a Unit Franchise, the legal proceedings will occur in the local court within the franchisee's state and county.
However, for disputes related to the Subfranchisor Agreement, the Guaranty stipulates that the guarantor submits to the jurisdiction of the state or federal court closest to Anago's principal place of business, which is currently Pompano Beach, Florida. This means that any legal actions or proceedings related to the Guaranty for a Subfranchise will take place in a Florida court near Pompano Beach, regardless of where the subfranchisee is located. This could create additional costs and logistical challenges for a subfranchisee who does not reside in Florida.
It is also important to note that Anago agreements contain clauses requiring disputes to be submitted to arbitration, as detailed in Section 18.11 of the Franchise Agreement. This means that instead of going to court, some disputes may need to be resolved through arbitration, as specified in the franchise agreement.