Does the jurisdiction clause in the Bevaris Alliance agreement apply to non-contractual disputes?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 27.14 Governing law. This agreement, and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims), shall be governed by, and construed in accordance with the law of California.
- 27.15 Jurisdiction. Each party irrevocably agrees that the courts of California shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this agreement or its subject matter or formation (including non-contractual disputes or claims).
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the jurisdiction clause explicitly applies to non-contractual disputes. Clause 27.15 states that the courts of California have exclusive jurisdiction to settle any dispute or claim arising from or related to the franchise agreement, including non-contractual disputes. This means that any legal action, regardless of whether it is based on a breach of contract or another legal theory, must be pursued in the courts of California.
This clause has significant implications for prospective Bevaris Alliance franchisees, particularly those located outside of California. Franchisees must be prepared to litigate any disputes with Bevaris Alliance in California, which could increase legal costs due to travel, local counsel fees, and other related expenses. The franchisee will be subject to California law, as specified in clause 27.14, which may differ from the laws of their home state.
Franchise agreements commonly include jurisdiction clauses, but the specific terms can vary. Some agreements may allow for arbitration or mediation in a neutral location, while others may specify the franchisor's home state as the jurisdiction. Prospective franchisees should carefully consider the implications of the jurisdiction clause and consult with an attorney to understand their rights and obligations. Understanding the governing law and jurisdiction is crucial before entering into a franchise agreement with Bevaris Alliance.