In what court must litigation for excepted disputes under the Body20 franchise agreement be filed?

According to Body20's 2025 Franchise Disclosure Document, litigation for excepted disputes must be filed in a specific court. These disputes, which Body20 does not consent to resolve through arbitration, include those arising under the Lanham Act, those related to the ownership or validity of intellectual property, those involving the enforcement of Body20's intellectual property rights or protection of proprietary information, and those related to the payment of sums owed to Body20 or its affiliates.

The litigation must be filed exclusively in the United States District Court for the district in which Body20 has its principal place of business at the time of filing. If federal jurisdiction cannot be obtained, the litigation must be filed in the state court in which Body20 has its principal place of business at the time of filing. The prospective franchisee irrevocably consents to the jurisdiction of these courts.

This clause ensures that Body20 can litigate certain critical disputes, especially those concerning intellectual property and payments, in a forum that it deems appropriate. For a franchisee, this means they may have to litigate in a state and court chosen by Body20, which could increase legal costs if the franchisee is located far from Body20's principal place of business. It is important for a prospective franchisee to understand this obligation and factor in potential travel and legal expenses should such a dispute arise.