What is the exclusive jurisdiction for resolving controversies related to the Bananas Smoothies Frozen Yogurt agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
othing in this Paragraph is intended to subject this agreement to any franchise or similar law, rule or regulation of the State of New Jersey to which it otherwise would not be subject.
Except as otherwise stated herein, any and all controversies, claims or disputes among Franchisor, Franchisee and any or all of their respective owners, affiliates, officers, directors, shareholders, members, employees and agents shall be resolved by litigation and brought, maintained and concluded exclusively in either the State Courts of New Jersey as hereinafter specified or Federal Court, in the United States District Court, the Newark vicinage in the State of New Jersey. If Franchisor initiates litigation in the State Court of New Jersey, such litigation may, in Franchisor's sole discretion, be instituted in either Morris County, Essex County or Union County New Jersey. If litigation is instituted by Franchisee, its owners or any party hereto, other than Franchisor, in State Court, such litigation shall be instituted maintained and concluded only in Morris County, New Jersey and if in Federal Court, the United States District Court in the Newark vicinage in the State of New Jersey. Franchisee and each owner, waive to the fullest extent permitted by law, any objection that Franchisee and each owner may now or in the future have to the laying of jurisdiction or venue of any litigation arising out of or in connection with this Agreement brought by Franchisor in Federal Court in the United States District State Court, Newark vicinage or in State Court by Franchisor, in either Morris County, Essex County, or Union County in New Jersey or if brought by Franchisee and/or any owner thereof in the State Court, in Morris County, New Jersey. Franchisee and any owner thereof or any party hereto,
waives any objection as to any action or proceeding brought in such court or that such court is an inconvenient forum. The Franchisee or any owner or any party hereto, further acknowledges and agrees that Franchisor may institute legal action for injunctive relief including temporary restraining orders and preliminary injunctions pursuant to Paragraph 29.03 "Right to Injunctive Relief".
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, any controversies, claims, or disputes involving the franchisor, franchisee, and their respective owners, affiliates, officers, directors, shareholders, members, employees, and agents will be resolved through litigation. The FDD specifies that such litigation must be brought, maintained, and concluded exclusively in either the State Courts of New Jersey or the Federal Court in the United States District Court, Newark vicinage, in the State of New Jersey.
If Bananas Smoothies Frozen Yogurt initiates litigation in the State Courts of New Jersey, the litigation may be instituted in either Morris County, Essex County, or Union County, New Jersey, at the franchisor's discretion. However, if the franchisee or any other party other than Bananas Smoothies Frozen Yogurt initiates litigation in State Court, it must be instituted, maintained, and concluded only in Morris County, New Jersey. If the litigation occurs in Federal Court, it must be in the United States District Court in the Newark vicinage in the State of New Jersey.
The FDD states that the franchisee and each owner waive any objections to the jurisdiction or venue of any litigation arising from or connected with the agreement. This waiver applies to litigation brought by Bananas Smoothies Frozen Yogurt in Federal Court in the United States District State Court, Newark vicinage, or in State Court in either Morris County, Essex County, or Union County in New Jersey. It also applies if the franchisee and/or any owner brings the litigation in the State Court in Morris County, New Jersey. The franchisee also waives any objection to any action or proceeding brought in such court or that such court is an inconvenient forum. Bananas Smoothies Frozen Yogurt may also institute legal action for injunctive relief, including temporary restraining orders and preliminary injunctions.
For a prospective Bananas Smoothies Frozen Yogurt franchisee, this means that any legal disputes will likely need to be resolved in New Jersey, regardless of where the franchise is located. This could involve significant travel and legal expenses if the franchisee is not located near New Jersey. The franchisee also waives the right to object to New Jersey as the venue, potentially limiting their ability to argue for a more convenient location. The franchisor's ability to seek injunctive relief could also quickly impact the franchisee's operations during a dispute.