Where is the exclusive jurisdiction and venue for disputes related to the Carls Jr. agreement?
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, Developer 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 Developer resides or does business or where the Development Territory or any Franchised Restaurant is or was located or where the claim arose.
Developer consents to the personal jurisdiction of those courts over Developer 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, disputes that cannot be resolved directly between the parties will be handled in a specific jurisdiction. Specifically, the franchisee or developer can only file suit against Carls Jr. in the federal or state court that has jurisdiction where Carls Jr.'s principal offices are located at the time the suit is filed.
However, Carls Jr. has more flexibility in choosing the venue. Carls Jr. can file suit against the franchisee or developer in the federal or state court located in the jurisdiction where its principal offices are located at the time suit is filed. Alternatively, Carls Jr. can file suit in the jurisdiction where the franchisee or developer resides or does business, adding a layer of convenience for Carls Jr.
Furthermore, the franchisee or developer consents to the personal jurisdiction of these courts, agreeing to the venue in those courts. This means that by entering into the franchise agreement, the franchisee is agreeing to be subject to the authority of those courts for any disputes arising under the agreement. This clause is designed to streamline legal proceedings and ensure that disputes are resolved in a predictable and agreed-upon forum.