To what jurisdiction do Angry Chickz franchisees submit regarding disputes related to the franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
ants and agreements set forth in this Agreement, the parties agree that each party shall have the right to obtain specific performance, temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction to enforce the covenants and agreements in this Agreement, in addition to any other relief to which such party may be entitled at law or in equity. Each party submits to the jurisdiction of the courts of the state and Federal courts of the state where Company's headquarters is located. Franchisee agrees that Company may have temporary or preliminary injunctive relief without bond, but upon due notice, and Franchisee's sole remedy in the event of the entry of such injunctive relief will be the dissolution of the injunctive relief, if warranted, upon hearing duly had (all claims for damages by reason of the wrongful issuance of any the injunction being expressly waived).
- 12.2.4 To the maximum extent permitted by Applicable Law, Franchisee shall obtain covenants similar to those in Sections 12.1 and 12.2 from Restricted Persons, and such other management personnel that have access to the Confidential Information, as Company may specify.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, franchisees agree to the jurisdiction of the courts of the state and Federal courts of the state where Angry Chickz's headquarters is located. The FDD specifies that Los Angeles, California, shall be the venue for any litigation arising under the franchise agreement. This includes all claims and issues, whether based in contract or tort, including claims of fraudulent inducement.
This means that if a franchisee has a legal dispute with Angry Chickz, they must pursue the matter in the California court system, specifically in Los Angeles. This clause dictates the location where lawsuits or other legal proceedings must occur. It is common for franchise agreements to specify a particular jurisdiction for dispute resolution, as it provides clarity and predictability for both parties.
The agreement also states that both Angry Chickz and the franchisee acknowledge they have reviewed this section and had the opportunity to seek independent legal advice. By agreeing to this clause, the franchisee is waiving their right to have disputes heard in their local jurisdiction and consenting to resolve legal matters in California. Franchisees should consider the potential costs and logistical challenges of litigating a case in a distant jurisdiction.
Additionally, the Angry Chickz franchise agreement includes a waiver of jury trial, meaning that both parties agree to have disputes decided by a judge rather than a jury, except as set forth in section 17.2. This is a common clause in franchise agreements. Franchisees should consult with an attorney to fully understand the implications of agreeing to jurisdiction and venue provisions, as well as the waiver of a jury trial.