Where will claims for equitable or injunctive relief against Bath Tune Up be conducted?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY |
|---|---|---|
| s. Modification of the | 14.3 | No modifications generally, but Manuals and |
| agreement | specifications are subject to change. | |
| t. Integration/merger clause | 14.2 | Only the terms of this franchise disclosure document, the franchise agreement and Manuals are binding (subject to state law). Any representations or promises made outside the disclosure document and franchise agreement may not be enforceable. |
| u. Dispute resolution by | 11.3 – 11.4 | Except for certain claims, and subject to state law, all |
| arbitration or | disputes must be mediated and arbitrated in Brown | |
| mediation | County, South Dakota. | |
| v. Choice of forum | 11.6 | Subject to applicable state law, claims for equitable or injunctive relief must be conducted in South Dakota. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 41–45)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, claims for equitable or injunctive relief must be conducted in South Dakota, subject to applicable state law. This means that if a franchisee seeks a court order to either compel Bath Tune Up to take a specific action (injunctive relief) or to achieve a fair outcome when monetary damages are inadequate (equitable relief), the legal proceedings will take place in South Dakota.
This requirement to litigate such claims in South Dakota could present logistical and financial challenges for franchisees located outside of South Dakota. Franchisees may incur significant travel costs, legal fees for attorneys licensed in South Dakota, and the inconvenience of being away from their business and home during legal proceedings.
Choice of forum clauses are common in franchise agreements, as they provide the franchisor with a consistent legal environment. However, franchisees should carefully consider the implications of litigating disputes in a location that may be distant from their own place of business and residence. It is advisable to consult with a legal professional to understand the potential costs and challenges associated with this clause.