Does the Bombs Away franchise agreement require consent to jurisdiction of courts where Bombs Away Franchising's headquarters are located?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Location.
The place of arbitration shall be the city and state where Bombs Away Franchising's headquarters are located.
- (c) Injunctive Relief.
Either party may apply to the arbitrator seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved.
Either party also may, without waiving any remedy or right to arbitrate under this Agreement, seek from any court having jurisdiction any interim or provisional injunctive relief.
- (d) Intellectual Property Claims.
Either party may bring a claim involving an alleged infringement of any of Bombs Away Franchising's intellectual property rights in a court authorized to hear such claims under Section 17.5 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the franchise agreement specifies that the location of arbitration will be the city and state where Bombs Away Franchising's headquarters are located. This means that any disputes that go to arbitration will take place at the location of the headquarters.
However, the FDD also states that either party may seek interim or provisional injunctive relief from any court having jurisdiction, without waiving any remedy or right to arbitrate. Additionally, either party may bring a claim involving an alleged infringement of any of Bombs Away Franchising's intellectual property rights in a court authorized to hear such claims under Section 17.5 of the agreement.
Furthermore, a Rhode Island Rider to the franchise agreement states that any provision restricting jurisdiction or venue to a forum outside the State of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. This indicates that for franchisees in Rhode Island, the jurisdiction may not necessarily be limited to where Bombs Away Franchising's headquarters are located, especially for claims under the Rhode Island Franchise Investment Act.