factual

Does the Bombs Away franchise agreement require a waiver of objection to the venue of proceedings in courts where Bombs Away Franchising's headquarters are located?

Bombs_Away Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 17.5 Venue Other Than Arbitration. For any legal proceeding not required to be submitted to arbitration, the parties agree that any such legal proceeding will be brought in the United States District Court where Bombs Away Franchising's headquarters is then located. If there is no federal jurisdiction over the dispute, the parties agree that any such legal proceeding will be brought in the court of record of the state and county where Bombs Away Franchising's headquarters is then located. Each party consents to the jurisdiction of such courts and waives any objection that it, he or she may have to the laying of venue of any proceeding in any of these courts.

Source: Item 22 — CONTRACTS (FDD pages 35–36)

What This Means (2024 FDD)

According to Bombs Away's 2024 Franchise Disclosure Document, the franchise agreement includes a provision regarding venue for legal proceedings. Specifically, for any legal proceeding not required to be submitted to arbitration, the agreement stipulates that such proceedings will be brought in the United States District Court where Bombs Away Franchising's headquarters is located. If there is no federal jurisdiction, the proceedings will occur in the court of record of the state and county where Bombs Away Franchising's headquarters is located.

Each party to the franchise agreement consents to the jurisdiction of these courts. Furthermore, each party waives any objection to the venue of any proceeding in these courts. This means a franchisee is agreeing to have legal disputes (outside of arbitration) resolved in the specific courts designated by Bombs Away, which are those located where their headquarters is situated.

This clause is fairly standard in franchise agreements, as it provides the franchisor with a consistent and predictable legal environment. However, it could present a disadvantage for franchisees who may need to travel to the location of Bombs Away's headquarters for court proceedings, potentially increasing their legal costs. Franchisees should be aware of this venue clause and consider its implications before signing the franchise agreement. Note that the Maryland and Rhode Island Riders to the franchise agreement contain stipulations regarding lawsuits and venue.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.