If there is no federal jurisdiction, where will legal proceedings be brought for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
**OHIO RIDER TO FRANCHISE AGREEMENT [**if applicable: AND MULTI-UNIT DEVELOPMENT AGREEMENT]
In connection with the sale of the Jurisdiction franchise, any provision in the and Venue. Agreement restricting jurisdiction or venue to a forum outside of Ohio, or requiring the application 1334.01 to 1334.15 of the BOPA. of laws of another state, is void with respect to a claim otherwise enforceable under Sections
**MARYLAND RIDER TO FRANCHISE AGREEMENT [**if applicable: AND MULTI-UNIT DEVELOPMENT AGREEMENT]
- Jurisdiction. Franchisee does not waive its right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Registration and Disclosure Law in any court of competent jurisdiction in the State of Maryland.
**ILLINOIS RIDER TO FRANCHISE AGREEMENT [**if applicable: AND MULTI-UNIT DEVELOPMENT AGREEMENT]
- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any Jurisdiction. provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the outside of Illinois. State of Illinois is void. However, a franchise agreement may provide for arbitration to occur
**RHODE ISLAND RIDER TO FRANCHISE AGREEMENT [**if applicable: AND MULTI-UNIT DEVELOPMENT AGREEMENT]
- Any provision of the Agreement restricting jurisdiction or venue Jurisdiction and Venue. to a forum outside the State of Rhode Island or requiring the application of the laws of another Investment Act. state is void with respect to a claim otherwise enforceable under Rhode Island Franchise
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the franchise agreement includes state-specific addenda that address jurisdiction and venue for legal proceedings. For instance, the Ohio Rider to the Franchise Agreement states that any provision restricting jurisdiction or venue to a forum outside of Ohio, or requiring the application of laws of another state, is void with respect to a claim otherwise enforceable under Sections 1334.01 to 1334.15 of the Ohio Business Opportunity Act (BOPA). This means that if a claim arises under the BOPA, the franchisee can pursue legal action in Ohio, regardless of what the standard franchise agreement says about out-of-state venues.
Similarly, the Illinois Rider to the Franchise Agreement specifies that any provision designating jurisdiction and venue in a forum outside of Illinois is void. However, it clarifies that arbitration can still occur outside of Illinois. The Maryland Rider ensures that franchisees do not waive their right to file a lawsuit under the Maryland Franchise Registration and Disclosure Law in any court of competent jurisdiction within Maryland.
The Rhode Island Rider also stipulates that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws is void for claims enforceable under the Rhode Island Franchise Investment Act. These state-specific riders collectively ensure that franchisees have the right to pursue legal claims within their own state, overriding any conflicting terms in the standard franchise agreement. Prospective franchisees should carefully review the rider applicable to their state to understand their rights regarding jurisdiction and venue.