If litigation is required for an excepted dispute with Carvel, in which court must it be filed?

According to Carvel's 2025 Franchise Disclosure Document, if litigation is required for disputes not subject to arbitration, such as those involving intellectual property or payment disputes, the lawsuit must be filed in the United States District Court for the district where Carvel has its principal place of business at the time of filing. The FDD states that the franchisee irrevocably consents to that court's jurisdiction. Carvel's principal business address is 5620 Glenridge Drive, Atlanta, Georgia 30342.

This means that a Carvel franchisee may be required to litigate certain disputes in a specific federal court, regardless of where the franchise is located. This could increase expenses for the franchisee, as they may need to hire legal counsel in the state where Carvel's principal place of business is located and incur travel costs to attend court proceedings.

However, the Minnesota Addendum to the FDD states that Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit Carvel from requiring that litigation be conducted outside Minnesota. In addition, nothing in the Disclosure Document or Franchise Agreement abrogate or reduce any of your rights provided for in Minnesota statutes Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. The North Dakota Addendum to the FDD states that the Franchise Agreement requires that you consent to the jurisdiction of a court in Georgia, but this provision may not be enforceable under North Dakota Law because North Dakota Law precludes you from consenting to jurisdiction of any court outside of North Dakota. The Rhode Island Addendum to the FDD states that Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."

It is important for prospective franchisees to understand these venue and jurisdiction provisions and how they might affect their legal rights and costs if a dispute arises with Carvel. Franchisees should consult with an attorney to fully understand the implications of these clauses, especially considering any state-specific addenda that may modify these terms.