In what specific federal district court must an Apricot Lane franchisee bring or defend actions?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to FRANCHISOR's and FRANCHISEE's arbitration obligations in Section 22.A above, FRANCHISEE irrevocably submits to the jurisdiction of the courts of the State of California in any suit, action or proceeding, arising out of or relating to this Agreement or any other dispute between FRANCHISEE and FRANCHISOR, and FRANCHISEE irrevocably agrees that all claims in respect of any such suit, action or proceeding must be brought and/or defended therein except with respect to matters that are under the jurisdiction of the Federal Courts of the United States, which shall be brought and/or defended in the Federal District Court sitting in Sacramento, California. FRANCHISEE irrevocably waives, to the fullest extent it may lawfully do so, the defense of an inconvenient forum to the maintenance of such suit, action or proceeding and agrees that service of process for purposes of any such suit, action or proceeding need not be personally served within the State of California, but may be served with the same effect as if FRANCHISEE were served within the State of California, by certified mail or any other means permitted by law addressed to FRANCHISEE at the address set forth herein. Nothing contained herein shall affect FRANCHISOR'S rights to bring a suit, action or proceeding in any other appropriate jurisdiction, including any suit, action or proceeding brought by FRANCHISOR to enforce any judgment against FRANCHISEE entered by a State or Federal Court.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, any matters under the jurisdiction of the Federal Courts of the United States must be brought or defended in the Federal District Court sitting in Sacramento, California. This means that if a dispute between Apricot Lane and a franchisee involves a federal law issue (such as trademark infringement or federal antitrust claims), the case must be heard in that specific federal court.
This clause ensures that certain legal disputes are handled in a particular location and court system. For franchisees, this could mean incurring travel and legal expenses to litigate or defend a case in Sacramento, California, regardless of where their Apricot Lane franchise is located. It is important to note that this applies only to matters under federal court jurisdiction; other disputes may be subject to the jurisdiction of state courts in California.
Such stipulations regarding jurisdiction and venue are common in franchise agreements, as they provide clarity and predictability for both the franchisor and franchisee regarding where legal disputes will be resolved. However, franchisees should carefully consider the potential costs and inconveniences associated with litigating or defending a case in a distant jurisdiction. Franchisees should seek legal counsel to fully understand the implications of this clause before signing the franchise agreement.