Does a Beggars Pizza franchisee waive objections to personal jurisdiction or venue?
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 waives all objections to personal jurisdiction or venue. 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. Beggars Pizza, however, may commence an action against the franchisee in any court of competent jurisdiction.
This means that if a Beggars Pizza franchisee has a legal dispute with the supplier (BEGCOM, LLC) or Beggars Pizza, they are generally required to pursue that dispute in the specified Illinois courts. The franchisee also agrees that these courts are a convenient forum, preventing them from arguing that the location is too burdensome or inappropriate.
This clause is fairly common in franchise agreements, as it allows the franchisor to consolidate legal proceedings in a location that is convenient for them, typically their home state. However, it can create additional costs and logistical challenges for franchisees who live outside of Illinois, as they may need to travel and hire local counsel to litigate disputes. Prospective franchisees should carefully consider this clause and its potential implications before signing the franchise agreement.