What section of the Bft Franchise Agreement covers the choice of forum for litigation?

According to the 2025 FDD, the specific section of the Bft Franchise Agreement that covers the choice of forum for litigation is addressed in Item 17. Item 17.v, entitled Choice of forum, includes information regarding the selection of a legal venue. However, the FDD includes specific state addenda that may modify the standard agreement. For example, the Maryland addendum states that a franchisee may bring suit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of what the standard agreement says. Similarly, the Rhode Island addendum stipulates that any franchise agreement provision restricting jurisdiction or venue to a forum outside of Rhode Island is void with respect to claims enforceable under the Rhode Island Franchise Investment Act.

These state-specific stipulations are important for prospective Bft franchisees to understand, as they can significantly impact their legal rights and options depending on the state in which they operate their franchise. The interplay between the standard franchise agreement and state franchise laws can be complex, especially concerning dispute resolution.

It is important to note that the enforceability of forum selection clauses can be subject to legal challenges, particularly when they conflict with state franchise laws or regulations. Franchisees should be aware of their rights under both the franchise agreement and applicable state laws, and they should seek legal counsel if they have any questions or concerns about dispute resolution provisions.

Therefore, prospective Bft franchisees should carefully review Item 17, including all state-specific addenda, and consult with an attorney to fully understand their rights and obligations regarding choice of forum and dispute resolution.