Where must the customer bring actions, suits, or proceedings related to the Beggars Pizza agreement?

According to Beggars Pizza's 2025 Franchise Disclosure Document, any legal action initiated by the franchisee against the supplier or Beggars Pizza must be filed in specific courts within Illinois. Specifically, the suit must be brought in the U.S. District Court for the Northern District of Illinois. However, if this court lacks the necessary subject matter jurisdiction, the action must be brought in a state court located in Cook County, Illinois.

This requirement places a significant burden on franchisees located outside of Illinois, as they would be required to litigate any disputes in Illinois courts. This could substantially increase legal costs due to travel, local counsel fees, and other related expenses. It also means that franchisees must become familiar with Illinois state law, even if it differs from the laws in their own state.

The document also states that Beggars Pizza's supplier has the right to commence an action against the franchisee in any court that has competent jurisdiction. The franchisee also waives all objections to personal jurisdiction or venue. This section does not prevent the supplier from removing an action from state court to federal court. The franchisee also waives any objection that such courts are an inconvenient forum.

These stipulations regarding jurisdiction and venue are common in franchise agreements, as they provide the franchisor with a predictable legal environment. However, prospective franchisees should carefully consider the implications of these clauses, especially if they are located far from Illinois, and seek legal counsel to understand their rights and obligations.