To which courts does the Guarantor submit jurisdiction under the Azal Coffee Guaranty?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
GUARANTOR IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE STATE AND FEDERAL COURTS OF THE STATE AND COUNTY OF WHICH FRANCHISOR'S PRINCIPAL PLACE OF BUSINESS IS LOCATED AT THE TIME THAT THE LITIGATION IS COMMENCED AND WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION OR VENUE FOR THE PURPOSE
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the Guarantor irrevocably submits to the jurisdiction of the state and federal courts located in the state and county where Azal Coffee's principal place of business is located at the time litigation commences. The Guarantor also waives all questions of personal jurisdiction or venue for the purpose of such litigation.
In simpler terms, this means that if there's a legal dispute related to the Guaranty, the Guarantor agrees to be sued in the courts of the state and county where Azal Coffee has its main office when the lawsuit is filed. The Guarantor cannot argue that those courts don't have authority over them or that the location is inconvenient.
For a prospective Azal Coffee franchisee, this clause is important because it clarifies where legal disputes involving the Guaranty will be resolved. It ensures that Azal Coffee can pursue legal action against the Guarantor in a location convenient for the company. Franchisees should be aware of this clause and understand its implications, especially if they are acting as a guarantor or if someone is guaranteeing their obligations under the franchise agreement.