Where can CKR file suit against a Carls Jr. franchisee?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
CKR may file suit in the federal or state court located in the jurisdiction where CKR's principal offices are located at the time suit is filed, in the jurisdiction where Franchisee resides or does business, where any Franchised Restaurant is or was located, where the claim arose or where Franchisor has its principal offices at the time suit is filed.
Franchisee consents to the personal jurisdiction of those courts over Franchisee and venue in those courts.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, CKR (CKE Restaurants Holdings, Inc.) has multiple options regarding where it can file a lawsuit against a franchisee. Specifically, CKR can file suit in the federal or state court located in the jurisdiction where CKR's principal offices are located at the time the suit is filed.
Additionally, Carls Jr. can file suit in the jurisdiction where the franchisee resides or does business. This provides CKR with flexibility, allowing them to choose a location that may be more convenient or advantageous for their legal strategy.
Carls Jr. can also file suit where any franchised restaurant is or was located, or where the claim arose. The franchisee consents to the personal jurisdiction of these courts, meaning the franchisee agrees to be subject to the authority of these courts. This clause ensures that Carls Jr. isn't restricted to only suing in their home jurisdiction and can pursue legal action in locations directly relevant to the dispute.