In what judicial district must litigation against Boulder Designs be initiated and maintained?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the | Summary | |
|---|---|---|---|
| Franchise Agreement | |||
| a. Length of the franchise | Section 4.1 | 10 years. | |
| term | |||
| b. Renewal or extension of | Section 4.2 | Additional 10-year term if certain conditions | |
| the term | are met. | ||
| Provision | Section in the Franchise Agreement | Summary or modify their business relationship with Us, our Affiliate(s) or any other franchisee. | |
| s. Modification of the | Sections 9.2 and | The Franchise Agreement can be modified | |
| agreement | 22.6 | only by written agreement between you and us. | |
| t. Integration/merger clause | Section 22.6 | Only the terms of the Franchise Agreement and all exhibits to the Franchise Agreement are binding (subject to state law). Any representations or promises made outside of the disclosure document and the Franchise Agreement may not be enforceable. | |
| u. Dispute resolution by arbitration or mediation | Section 23.7 | Except for actions or claims for injunctive relief or specific performance or relating to the Marks, Trade Secrets or Confidential Information, all disputes must be mediated in McLennan County, Texas. (Subject to state law) | |
| v. Choice of forum | Section 23.2 | Litigation must be initiated and maintained in the judicial district in which our principal place of business is located at the time the lawsuit was initiated, currently Waco, Texas. We have the right to seek injunctive relief from any court of competent jurisdiction. (Subject to state law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, litigation must be initiated and maintained in the judicial district in which Boulder Designs' principal place of business is located at the time the lawsuit was initiated, which is currently Waco, Texas. This is subject to state law.
This means that if a franchisee has a dispute with Boulder Designs that results in a lawsuit, the franchisee will likely need to pursue that lawsuit in Waco, Texas, regardless of where the franchisee's business is located. This could create additional expenses for the franchisee, such as travel costs and attorney fees, as they may need to hire a Texas-based attorney.
However, the FDD also notes that Boulder Designs has the right to seek injunctive relief from any court of competent jurisdiction. Injunctive relief typically involves seeking a court order to stop someone from doing something, so Boulder Designs could potentially pursue this type of action in a different location if necessary. Franchisees should consult with a legal professional to understand their rights and obligations regarding choice of forum and applicable state laws, as these can vary and may impact the enforceability of certain provisions in the franchise agreement.