factual

Where will legal proceedings not subject to arbitration be brought for Bombs Away?

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, any legal proceeding not required to be submitted to arbitration will be brought in the United States District Court where Bombs Away Franchising's headquarters is located. If there is no federal jurisdiction over the dispute, the legal proceeding will be brought in the court of record of the state and county where Bombs Away Franchising's headquarters is located. Each party consents to the jurisdiction of such courts and waives any objection to the venue in these courts.

This means that if a Bombs Away franchisee has a legal dispute with the franchisor that is not subject to arbitration, the franchisee may have to travel to the location of Bombs Away Franchising's headquarters to pursue the legal action. This could increase the franchisee's legal costs, especially if the franchisee is located far from Bombs Away Franchising's headquarters.

Many franchise agreements contain similar clauses that require legal proceedings to be brought in the franchisor's home jurisdiction. This is generally seen as a benefit to the franchisor, as it allows them to manage legal disputes more efficiently. However, it can be a disadvantage for franchisees, who may have to incur significant travel costs to pursue a legal claim.

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.