In disputes involving Carls Jr., where can the Applicant and Other Individuals file suit against CJR?
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, Applicant and Other Individuals may 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 Applicant or Other Individuals reside or do business. Applicant and Other Individuals consent to the personal jurisdiction of those courts over Applicant and Other Individuals and to 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, if disputes cannot be resolved directly, the Applicant and Other Individuals may file suit against CJR only in the federal or state court having jurisdiction where CJR's principal offices are located at the time the suit is filed. CJR, however, has more options for where it can file suit.
CJR may file suit against the Applicant and Other Individuals 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 Applicant or Other Individuals reside or do business. The Applicant and Other Individuals consent to the personal jurisdiction of those courts and to venue in those courts.
This arrangement means that Carls Jr. franchisees may have to travel to the location of CJR's principal offices to pursue legal action, which could increase their legal costs. It is a fairly common practice in franchising for the franchisor to specify the jurisdiction where lawsuits must be filed.