Where can CJR file a lawsuit against a Carls Jr. franchisee?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. The parties agree that, to the extent any disputes cannot be resolved directly between them, Franchisee shall file any suit against CJR only in the federal or state court having jurisdiction where CJR's principal offices are located at the time suit is filed.
CJR may file suit in the federal or state court located in the jurisdiction where its principal offices are located at the time suit is filed or in the jurisdiction where Franchisee resides or does business or where the Franchised Restaurant is or was located or where the claim arose.
Franchisee consents to the personal jurisdiction of those courts over Franchisee and to venue in those courts.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, CJR may file a suit against a franchisee in specific jurisdictions. Carls Jr. has the option to file a lawsuit in the federal or state court located in the jurisdiction where its principal offices are located at the time the suit is filed. Alternatively, Carls Jr. can file suit in the jurisdiction where the franchisee resides or conducts business.
Additionally, Carls Jr. can file a lawsuit where the franchised restaurant is or was located, providing another venue option depending on the circumstances of the dispute. Another option for CJR is to file suit where the claim arose, which could be a different location from where the franchisee resides or where the restaurant is located, depending on the nature of the dispute.
The franchisee consents to the personal jurisdiction of these courts, meaning the franchisee agrees to be subject to the authority of these courts. The franchisee also consents to the venue in those courts, meaning they agree that those courts are the appropriate place for the lawsuit to be heard. This clause clarifies the legal framework for potential disputes between Carls Jr. and its franchisees, outlining the specific courts that have jurisdiction and are considered appropriate venues for such legal actions.