Where will arbitration or lawsuits related to an Auntie Annes franchise be conducted?

According to Auntie Annes's 2024 Franchise Disclosure Document, subject to state law, arbitration or lawsuits must occur in the metropolitan area of the district court where Auntie Annes's principal place of business is located. Currently, this location is in Georgia. This applies to most disputes that arise between the franchisee and Auntie Annes.

This means that a franchisee may be required to travel to Georgia to resolve disputes through arbitration or litigation, regardless of where their Auntie Annes franchise is located. This could result in significant travel expenses and legal fees for the franchisee. It is important to note that this is subject to state law, which may provide some protections for franchisees.

Choice of forum clauses are relatively common in franchise agreements. Franchisees should carefully consider the implications of such clauses, including the potential costs and inconvenience of litigating or arbitrating disputes in a distant forum. It is advisable to seek legal counsel to understand the specific laws in their state and how they may affect the enforceability of the forum selection clause.