In what court can the supplier commence an action against a Beggars Pizza franchisee?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Jurisdiction And Venue. Any action, whether or not arising out of, or relating to, the Agreement, brought by Franchisee (or any principal thereof) against Supplier or Beggars must be brought in the U.S. District Court for the Northern District of Illinois or, if such court lacks subject matter jurisdiction, in a state court located in Cook County, Illinois. Supplier may commence an action against Franchisee in any court of competent jurisdiction. Franchisee hereby waives all objections to personal jurisdiction or venue for purposes of this Section 10 and agrees that nothing in this Section 10 will be deemed to prevent Supplier from removing an action from state court to federal court. Franchisee irrevocably waives any objection that such courts are an inconvenient forum.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the supplier, BEGCOM, LLC, has the right to commence an action against a franchisee in any court that has the proper jurisdiction. This means the supplier is not limited to a specific court or location when pursuing legal action against a franchisee.
This flexibility benefits the supplier, as they can choose a court that is most convenient or advantageous for their case. For a prospective Beggars Pizza franchisee, this means they could potentially face legal action in a court located outside of their local area, depending on where the supplier chooses to file the suit. This could increase the franchisee's legal costs and logistical challenges in defending themselves.
However, the FDD also states that any action brought by the franchisee against the supplier or Beggars Pizza must be brought in the U.S. District Court for the Northern District of Illinois, or if that court lacks jurisdiction, in a state court located in Cook County, Illinois. This creates a situation where the franchisee is limited to specific courts for their claims, while the supplier has broader options. Franchisees also waive objections to personal jurisdiction or venue, and agree that the supplier can remove an action from state court to federal court.
Given this arrangement, a prospective Beggars Pizza franchisee should carefully consider the potential implications of this clause and consult with a legal professional to understand their rights and obligations in the event of a dispute with the supplier.