In the Batteries Plus Bulbs agreement, what rights does the franchisee waive regarding challenging venue?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Any claims, controversies or disputes arising out of or related to this Agreement that are not subject to arbitration as provided above, will be brought exclusively in the Federal District Court for the Eastern District of Wisconsin or in Waukesha County District Court in Waukesha, Wisconsin.
Franchisor also has the right to file any such suit against Franchisee in the federal or state court where the Store is located.
Each of Franchisor and Franchisee irrevocably consents to the jurisdiction of such courts and waive all rights to challenge personal jurisdiction and venue.
The provisions of this Section 20(D) will survive the termination of this Agreement.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, franchisees waive certain rights related to legal venue. Specifically, any claims or disputes not subject to arbitration must be brought in the Federal District Court for the Eastern District of Wisconsin or in Waukesha County District Court in Waukesha, Wisconsin. However, Batteries Plus Bulbs retains the right to sue the franchisee in the federal or state court where the store is located.
By signing the franchise agreement, the franchisee consents to the jurisdiction of the specified courts and waives all rights to challenge personal jurisdiction and venue. This means a franchisee cannot argue that the case should be heard in a different location or that the Wisconsin courts lack authority over them. This waiver remains in effect even after the termination of the franchise agreement.
This venue clause is fairly common in franchise agreements. It centralizes legal proceedings in the franchisor's home jurisdiction, which can be more convenient and cost-effective for Batteries Plus Bulbs. However, it may create additional expenses and logistical challenges for franchisees who live and operate their stores far from Wisconsin, as they may need to travel and hire local counsel in Wisconsin to defend themselves in a lawsuit.