Does a Beggars Pizza franchisee irrevocably waive any objection that the courts are an inconvenient forum?
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 the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee does irrevocably waive any objection to the specified courts as an inconvenient forum. Specifically, 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 means that a Beggars Pizza franchisee, regardless of where their franchise is located, agrees to litigate disputes with the supplier or Beggars Pizza in Illinois. This could increase the franchisee's costs if they need to travel to Illinois for court proceedings. It is a standard practice in franchising for the franchisor to specify a jurisdiction for legal disputes, as it allows them to manage legal issues in a location convenient for them.
The franchisee also agrees to waive any objections to personal jurisdiction or venue in Illinois, further solidifying the franchisor's ability to litigate in their preferred location. However, the supplier retains the right to commence an action against the franchisee in any court of competent jurisdiction, providing the supplier with more flexibility in choosing a venue for disputes against the franchisee.