If litigation is required for an excepted dispute with Auntie Annes, in which court must it be filed?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- D.
Excepted Disputes.
The following disputes will not be resolved through arbitration unless we consent to arbitration: (i) disputes that arise under or are related to the Lanham Act, as now or later amended; (ii) disputes that otherwise relate to the ownership or validity of any of the Intellectual Property; (iii) disputes that involve enforcement of our intellectual property rights or protection of our Confidential Information or Trade Secrets; or (iv) disputes related to the payment of sums you owe us or our affiliates.
Any litigation under this subsection will be filed exclusively in the United States District Court for the district in which we have our principal place of business at the time of filing, and you irrevocably consent to this court's jurisdiction over you.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, certain disputes are not subject to resolution through arbitration unless Auntie Annes consents to it. These 'excepted disputes' include those arising under the Lanham Act, those related to the ownership or validity of intellectual property, those involving the enforcement of Auntie Annes's intellectual property rights or the protection of confidential information/trade secrets, and those related to the payment of sums owed to Auntie Annes or its affiliates.
For these specific types of disputes, any litigation must be filed exclusively in the United States District Court for the district in which Auntie Annes has its principal place of business at the time of filing. The prospective franchisee irrevocably consents to the jurisdiction of this court. This means that a franchisee may be required to litigate certain disputes in a specific federal court, regardless of where the franchisee's business is located.
This requirement could pose logistical and financial challenges for a franchisee if they are located far from Auntie Annes's principal place of business. It is important for potential franchisees to understand this clause and consider the potential costs and inconveniences associated with litigating in a potentially distant court. Franchisees should also be aware of the specific types of disputes that fall under this clause, as it could impact their ability to resolve conflicts through arbitration.