Where is the forum for litigation related to the Azal Coffee Franchise Agreement?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ise Agreement; | |
| Provision | Section in Agreement | Summary |
|---|---|---|
| franchise is terminated or | ||
| expires | ||
| s. Modification of | Section 20.11 of | No modifications unless in writing, but |
| Franchise Agreement | Franchise Agreement | specifications subject to change by us. |
| t. Integration/merger clause | Section 20.11 of Franchise Agreement | Only the terms of the Franchise Agreement are binding (subject to state law); however, no claim made in a Franchise Agreement is intended to disclaim the express representations made in this Franchise Disclosure Document. |
| u. Dispute resolution by arbitration or mediation | Section 18.1 of the Franchise Agreement | Except for disputes over the ownership and validity of the Trademarks and actions by us for injunctive relief and subject to state law, all disputes are subject to binding arbitration in Michigan. |
| v. Choice of forum | Section 18.4 of Franchise Agreement | Litigation must be where our principal place of business is located at the time of filing (subject to state law). |
| w. Choice of law | Section 18.3 of | Michigan law applies (subject to state |
| Franchise Agreement | law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–47)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the forum for litigation related to the Franchise Agreement is determined by the location of Azal Coffee's principal place of business at the time the lawsuit is filed. This is subject to state law. This means that if a franchisee has a dispute with Azal Coffee that results in litigation, the lawsuit must be filed in the jurisdiction where Azal Coffee's main office is located when the suit is initiated.
This provision is important for prospective franchisees to consider because it dictates where they may have to travel and hire legal representation if they need to sue Azal Coffee. Depending on where the franchisee is located, this could add significant costs and logistical challenges to any legal action against the company. Franchisees should be aware of this forum selection clause and factor it into their decision-making process.
It is also important to note that this choice of forum is subject to state law, which means that some states may have laws that override this clause in certain circumstances. Prospective franchisees should consult with an attorney to understand how the forum selection clause may be interpreted and enforced in their particular state. Arbitration is required in Michigan, except for disputes over trademarks, injunctive relief, and subject to state law.