For Caring Transitions franchises in South Dakota, is a provision in the franchise agreement restricting jurisdiction or venue to a forum outside of South Dakota valid?

According to Caring Transitions' 2025 Franchise Disclosure Document, any provision in the franchise agreement that restricts jurisdiction or venue to a forum outside of South Dakota is void with respect to a claim otherwise enforceable under the South Dakota Franchise Act. This means that if a Caring Transitions franchisee in South Dakota has a claim against the franchisor that is enforceable under the South Dakota Franchise Act, they cannot be forced to litigate that claim in another state. This protection is explicitly included in the South Dakota Addendum to the Franchise Agreement.

However, the FDD also states that issues regarding franchise registration, employment, covenants not to compete, and other matters of local concern will be governed by the laws of the State of South Dakota. But as to contractual and all other matters, all provisions of the franchise agreement will be subject to the governing law of the State of Ohio. This indicates a dual system of governance where some aspects are under South Dakota law and others fall under Ohio law.

In practical terms, this means a Caring Transitions franchisee in South Dakota would have the right to pursue legal claims related to the franchise within South Dakota, particularly those claims arising under the South Dakota Franchise Act. However, it's important to note the distinction between issues governed by South Dakota law versus those governed by Ohio law, as this could impact the specific venue and jurisdiction for different types of disputes. Franchisees should seek legal counsel to understand how these provisions apply to their specific circumstances.