Does the Carls Jr. franchise agreement permit class action suits or trial by jury?
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, 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 document does not explicitly state whether class action suits or trial by jury are permitted. However, the agreement does specify the governing law, forum, and limitations regarding disputes. Franchisees must file suits against CJR in the federal or state court having jurisdiction where CJR's principal offices are located. CJR, on the other hand, can file suit where its principal offices are, 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 these courts.
This indicates that while the agreement outlines where suits can be filed, it does not directly address the availability of class action suits or the right to a trial by jury. The agreement is governed by Tennessee law, but this does not automatically determine whether class actions or jury trials are permissible. The absence of specific clauses either permitting or prohibiting these options leaves room for interpretation based on applicable laws and court rules.
A prospective Carls Jr. franchisee should seek clarification from the franchisor regarding their policy on class action waivers and jury trial waivers. It would also be prudent to consult with an attorney to understand the implications of the governing law and forum selection clauses in the franchise agreement, as well as to assess their rights and options in case of a dispute.