For matters not subject to arbitration, which court has jurisdiction for litigation involving Benihana?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise Agreement | Summary | |
|---|---|---|---|
| u. | Dispute resolution by arbitration or mediation | Article 15 | All disputes, with the exception of claims based upon or arising under the Lanham Act, the Sherman Act, the Clayton Act (or other federal or state antitrust statute), related to obtaining possession of the Restaurant or Location, related to breaches of Article 18 of the Franchise Agreement, or for monies due to us, are to be arbitrated in Miami, Florida before a three member panel under the Rules of the American Arbitration Association. The arbitrators are not authorized to award punitive damages or attorneys' fees, and an arbitration will be conducted on an individual, and not a class-wide, basis. |
| v. | Choice of forum | Section 15.6 | In connection with matters not subject to arbitration, litigation must be in the United States District Court for the Southern District of Florida, or, if that court lacks jurisdiction, the 11th Judicial Circuit in and for Miami-Dade County, Florida. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 59–65)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, any litigation related to the franchise agreement that is not subject to arbitration must occur in specific courts in Florida. Specifically, the FDD states that the litigation must take place in the United States District Court for the Southern District of Florida.
However, if the U.S. District Court for the Southern District of Florida lacks jurisdiction, the litigation must occur in the 11th Judicial Circuit in and for Miami-Dade County, Florida. This ensures that legal disputes are handled within a defined legal framework and location.
This clause is important for prospective Benihana franchisees as it dictates where they may need to travel and engage legal counsel should a dispute arise that is not subject to arbitration. Franchisees should consider the potential costs and logistical challenges associated with litigating in Florida, regardless of where their Benihana restaurant is located.