Where must a Beggars Pizza customer bring actions, suits, or proceedings related to the agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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, any legal action initiated by a franchisee against the supplier or Beggars Pizza must be brought in specific courts within Illinois. The franchisee is required to file such actions in the U.S. District Court for the Northern District of Illinois. However, if this federal court lacks the necessary jurisdiction, the suit must be filed in a state court located in Cook County, Illinois.
This requirement means that a Beggars Pizza franchisee, regardless of where their franchise is located, must be prepared to litigate any disputes with the supplier or Beggars Pizza in Illinois. This could involve significant travel and legal expenses for a franchisee located outside of Illinois. The franchisee also waives any objections to personal jurisdiction or venue, agreeing that these courts are a suitable forum.
The FDD specifies that this section does not prevent the supplier from moving a case from state court to federal court. Additionally, the franchisee waives the right to object that these courts are an inconvenient forum. This clause is designed to ensure that Beggars Pizza and its supplier can manage legal disputes in a location convenient for them, potentially creating a disadvantage for franchisees who may need to litigate from a distance.