Does the Bft franchise agreement allow franchisees to object to the jurisdiction or venue of courts near the Franchisor's principal place of business?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.6 Consent to Jurisdiction. Subject to the obligation to submit to binding arbitration under Section 16.4 above, Franchisor and Franchisee agree that all controversies, disputes, or claims between them or any Franchisor Parties and Franchisee Parties arising out of or related to this Agreement or any other agreement between a Franchisor Party and a Franchisee Party or their relationships with each other must be commenced exclusively in state or federal court closest to Franchisor's (or its successor's or assign's, as applicable) then-current principal place of business (currently, Irvine, California), and the Parties irrevocably consent to the jurisdiction of those courts and waive any objection to either the jurisdiction of or venue in those courts.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, franchisees are required to consent to the jurisdiction of specific courts. The Bft franchise agreement states that any legal disputes between Bft and a franchisee must be initiated exclusively in state or federal court closest to Bft's principal place of business, which is currently Irvine, California.
Specifically, the agreement stipulates that both Bft and the franchisee irrevocably consent to the jurisdiction of these courts. Furthermore, both parties waive any objection to either the jurisdiction or the venue in those courts. This means a franchisee cannot object to having legal proceedings occur in the specified courts near Bft's headquarters.
This clause is fairly standard in franchise agreements, as it allows Bft to manage legal disputes in a location convenient for them. However, it could present a disadvantage for franchisees located far from Irvine, California, who may incur significant travel and legal expenses to defend themselves in court. Prospective franchisees should consider this factor and consult with a legal professional to understand the implications of this clause fully.