Is the consent to jurisdiction and venue for Beard Papas franchises subject to any other provisions?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota."
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota franchisees, North Dakota law shall apply."
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:
- A. The Rhode Island Franchise Investment Act, R.I. Gen. Law Ch. 395 Sec. 19-28.1-14 provides that a provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, the consent to jurisdiction and venue for Beard Papas franchises is subject to specific provisions, particularly concerning the laws of certain states. For instance, in Illinois, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although arbitration may still take place outside of the state.
In North Dakota, the franchise agreement is amended to state that provisions requiring franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable. Furthermore, for North Dakota franchisees, North Dakota law shall apply. Additionally, any provision requiring a franchisee to waive their right to a jury trial or to waive exemplary and punitive damages is not enforceable under the North Dakota Franchise Investment Law.
Similarly, in Rhode Island, a provision in the Franchise Agreement restricting jurisdiction or venue to a forum outside the state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. These amendments ensure that franchisees' rights are protected under their respective state laws, overriding any conflicting terms in the standard franchise agreement.