In the event of litigation with Black Bear Diner, in which court or judicial district will it take place?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | ||
|---|---|---|---|---|
| Area Development Agreement is terminated or expires | the Area Development Agreement | and services similar to those provided by a Black Bear Diner restaurant within the Development Area or within 25 miles of any Black Bear Diner restaurant (subject to state law). | ||
| s. | Modification of the Development Agreement | Section 12.5 | The Area Development Agreement can only be modified or amended by written agreement signed by both parties. | |
| t. | Integration/merger clause | Section 12.5 | Only the terms of the Area Development Agreement are binding (subject to state law) and any other promises may not be enforceable. Nothing in the Area Development Agreement or any other agreement is intended to disclaim representations made in this disclosure document. | |
| u. | Dispute resolution by arbitration or mediation | Section 13.6 | Except for certain claims, all disputes must be mediated and then arbitrated in Redding, California (subject to state law). | |
| v. | Choice of forum | Section 13.2 | Litigation in state court or judicial district in which we have our principal place of business (subject to state law). | |
| w. | Choice of law | Section 13.1 | California law applies (subject to state law). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–52)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, any litigation will occur in the state court or judicial district where Black Bear Diner has its principal place of business. However, this is subject to state law.
Given that Black Bear Diner's headquarters are in California, as stated in Item 19, it is highly likely that any litigation would take place in California, unless state law dictates otherwise.
Prospective franchisees should be aware of this clause, as it means they may have to travel to California to resolve any legal disputes with the franchisor. It is important to consult with a legal professional to understand the implications of this clause and how state law might affect it.