Do Bambu and the franchisee waive any objection to the personal jurisdiction of or venue in the state and federal courts of Colorado?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, if a claim is asserted in any legal proceeding not subject to mandatory arbitration, as specified in Section 23.1 above, involving Franchisee and/or the Franchisee Affiliates, on the one side, and Bambu and/or the Bambu Affiliates, on the other side, both parties agree that the exclusive venue for disputes between them shall be in the state and federal courts of Colorado U.S.A., and each waive any objection either may have to the personal jurisdiction of or venue in the state and federal courts of Colorado U.S.A.
Notwithstanding the foregoing, any legal proceeding by Bambu or any Bambu Affiliate not subject to mandatory arbitration may be brought in any court of competent jurisdiction in the country, state, province, or other geographic area in which Franchisee's shoppe is located or in which Franchisee or any Franchisee Affiliate resides or owns assets.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, both Bambu and the franchisee agree to resolve disputes in Colorado courts if the matter is not subject to mandatory arbitration. This means that both parties consent to the jurisdiction and venue of state and federal courts located in Colorado. Consequently, both Bambu and the franchisee waive any objection to the personal jurisdiction or venue in those courts. This agreement is designed to promote stability in their relationship by establishing a clear forum for dispute resolution.
However, there is an exception to this rule. Bambu retains the right to initiate legal proceedings not subject to mandatory arbitration in any court with competent jurisdiction. This can include courts in the country, state, province, or geographic area where the franchisee's shoppe is located, or where the franchisee or any franchisee affiliate resides or owns assets. This exception provides Bambu with flexibility in pursuing legal action against the franchisee, potentially closer to the franchisee's location.
This clause has significant implications for prospective franchisees. By agreeing to the franchise terms, a franchisee is essentially consenting to have certain legal disputes resolved in Colorado, which may require them to travel to Colorado and incur associated legal costs. However, it's important to note that this applies only to disputes not subject to mandatory arbitration, and Bambu can still sue the franchisee in the franchisee's home jurisdiction. Franchisees should carefully consider these venue and jurisdiction provisions and consult with an attorney to understand the full scope of their legal rights and obligations under the franchise agreement.