Does the Carls Jr. franchise agreement allow franchisees to have a jury trial?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. This Agreement and any claim or controversy arising out of, or relating to, rights and obligations of the parties under this Agreement and any other claim or controversy between the parties shall be governed by and construed in accordance with the laws of the State of Tennessee without regard to conflicts of laws principles.
Nothing in this Section is intended, or shall be deemed, to make any Tennessee law regulating the offer or sale of franchises or the franchise relationship applicable to this Agreement if such law would not otherwise be applicable.
- 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)
Based on the 2025 Carls Jr. Franchise Disclosure Document, the agreement does not explicitly state whether a franchisee is entitled to a jury trial. However, the document does specify the governing law, forum, and limitations regarding disputes.
The Carls Jr. franchise agreement states that it is governed by the laws of Tennessee, without regard to conflicts of laws principles. It also specifies that any suit filed by a franchisee against CJR must be filed 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 the option to file suit in the jurisdiction where its principal offices are located, where the franchisee resides or does business, where the franchised restaurant is or was located, or where the claim arose. The franchisee consents to the personal jurisdiction and venue of those courts.
Because the FDD does not explicitly address jury trials, prospective Carls Jr. franchisees should seek clarification from the franchisor regarding their rights to a jury trial in the event of a dispute. Understanding the dispute resolution process, including the availability of a jury trial, is crucial before entering into a franchise agreement.