For Better Blend, what court jurisdiction applies to legal proceedings not subject to arbitration?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| MUDA: § 7 | Ohio) (subject to applicable state law). Any | |
| legal proceedings not subject to arbitration will | ||
| take place in the District Court of the United | ||
| States, in the district where our headquarters is | ||
| then located, or if this court lacks jurisdiction, | ||
| the state courts of the state and county where | ||
| our headquarters is then located (subject to | ||
| applicable state law). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 38–40)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, legal proceedings not subject to arbitration will take place in the District Court of the United States where Better Blend's headquarters is located. However, if this court lacks jurisdiction, the legal proceedings will occur in the state courts of the state and county where Better Blend's headquarters is located, subject to applicable state law.
This means that if a franchisee has a legal dispute with Better Blend that is not subject to arbitration, they may have to travel to the location of Better Blend's headquarters to resolve the issue in court. The FDD indicates that Better Blend's headquarters are located in Ohio. This could potentially increase the cost and inconvenience for a franchisee who lives far from Ohio.
It is important to note that the choice of law and venue may be subject to applicable state law, which could potentially modify or override the provisions in the franchise agreement. Prospective franchisees should consult with an attorney to understand the implications of these provisions and how they may affect their rights and obligations.