If a franchisee brings an action against Beggars Pizza, in which court must the action be brought?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.5 WAIVER OF RIGHT TO JURY TRIAL AND PUNITIVE DAMAGES.
FRANCHISOR AND FRANCHISEE HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY AGREE AS FOLLOWS: (A) FRANCHISOR AND FRANCHISEE HEREBY EXPRESSLY AND IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF THEM AGAINST THE OTHER, WHETHER OR NOT THERE ARE OTHER PARTIES IN SUCH ACTION OR PROCEEDING, AND (B) FRANCHISOR AND FRANCHISEE HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM OF ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT IF A DISPUTE BETWEEN THEM ARISES, EACH WILL BE LIMITED TO THE RECOVERY OF ANY ACTUAL DAMAGES SUSTAINED.
To the extent any of the provisions of this Section 25.5 are inconsistent with the provisions of Section 705/41 of the Illinois Franchise Disclosure Act of 1987, the provisions of Section 705/41 of the Act will apply.
- 25.6 LIMITATION OF CLAIMS.
ANY CLAIMS OR ACTIONS ARISING OUT OF OR RELATING TO THE AGREEMENT, THE RELATIONSHIP OF FRANCHISEE AND FRANCHISOR, OR FRANCHISEE'S OPERATION OF THE RESTAURANT BROUGHT BY FRANCHISEE AGAINST FRANCHISOR MUST BE COMMENCED WITHIN ONE (1) YEAR FROM THE OCCURRENCE OF THE FACTS GIVING RISE TO SUCH CLAIMS OR ACTION, OR SUCH CLAIMS OR ACTION WILL BE BARRED.
- 25.7 Injunctive Relief.
Nothing herein contained (including, without limitation, Section 25.2 and Section 25.3) will bar Franchisor's right to obtain injunctive relief from a court of competent jurisdiction without any requirement for Franchisor to post a bond against threatened conduct that will cause it los
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, Section 25.7 acknowledges Beggars Pizza's right to seek injunctive relief from a court of competent jurisdiction. This implies that any legal action a franchisee brings against Beggars Pizza must be pursued in a court that has the legal authority to hear the case. The FDD does not specify a particular court or jurisdiction for such actions.
However, Section 25.5 includes a waiver of the right to a jury trial, stating that both Beggars Pizza and the franchisee knowingly and voluntarily waive a jury trial in any action or proceeding brought by either party against the other. This waiver applies whether the action is at law or in equity and regardless of whether other parties are involved. Additionally, both parties waive any right to punitive or exemplary damages, limiting recovery to actual damages sustained. This section also notes that if any of its provisions are inconsistent with the Illinois Franchise Disclosure Act, the provisions of the Act will apply.
Furthermore, Section 25.6 stipulates that any claims or actions arising from the franchise agreement or the franchisee's operation of the restaurant must be commenced within one year from the occurrence of the facts giving rise to the claim. Failure to commence the action within this timeframe will bar the claim.
Prospective franchisees should consult with a legal professional to fully understand the implications of these clauses, particularly the waiver of jury trial and the limitation on claims, and to determine the appropriate venue for any legal actions against Beggars Pizza.