Does each party consent to the jurisdiction of the courts where Care Plus Medical Ucc's headquarters are located?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer 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 Care Plus Medical UCC'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 Care Plus Medical UCC'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 page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, both parties consent to the jurisdiction of the courts where Care Plus Medical UCC's headquarters are located for any legal proceeding not required to be submitted to arbitration. Specifically, they agree that such proceedings will be brought in the United States District Court where Care Plus Medical UCC'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 Care Plus Medical UCC's headquarters is located. Each party also waives any objection to the venue in these courts.
This agreement on venue is significant for prospective franchisees because it dictates where legal disputes must be resolved. If a franchisee wishes to sue Care Plus Medical UCC, they must do so in the specified courts, which may be far from the franchisee's location, potentially increasing legal costs and logistical challenges. Conversely, Care Plus Medical UCC would also be bound to the same venue if they were to sue a franchisee.
However, it's important to note that this venue agreement applies only to legal proceedings not required to be submitted to arbitration. The FDD outlines separate arbitration procedures, including the location of arbitration, which is also the city and state where Care Plus Medical UCC's headquarters are located. Additionally, the Rhode Island Rider to the Franchise Agreement stipulates that any provision restricting jurisdiction or venue to a forum outside the State of Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.