Where can Carls Jr. file a lawsuit against an applicant or other individual regarding a franchise dispute?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties agree that, to the extent any disputes cannot be resolved directly between them, Franchisee shall file any suit against CKR only in the federal or state court having jurisdiction where CKR's principal offices are located at the time suit is filed.
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, Carls Jr. has options regarding where it can file a lawsuit. If disputes cannot be resolved directly, Carls Jr. can file suit against a franchisee in the federal or state court located in the jurisdiction where Carls Jr.'s principal offices are located at the time the suit is filed.
Carls Jr. can also file suit in the jurisdiction where the franchisee resides or does business. Additionally, Carls Jr. can pursue legal action where any franchised restaurant is or was located, or where the claim arose. The FDD specifies that the franchisee consents to the personal jurisdiction of these courts and agrees to venue in those courts.
This means a Carls Jr. franchisee could potentially face a lawsuit from Carls Jr. in multiple locations depending on the specifics of the dispute. It is important for prospective franchisees to understand these terms and potentially seek legal counsel to fully grasp the implications of these jurisdictional clauses.