In the event of mediation, arbitration, or litigation, which state court of general jurisdiction will be used for Casiola?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| v. | Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation proceedings |
|---|---|---|---|
| must be conducted in, or closest to, State court of general | |||
| jurisdiction that is within or closest to Orange County, | |||
| Florida | |||
| or, | |||
| if appropriate, the United States District Court nearest to our | |||
| corporate headquarters at the time such action is filed. This | |||
| provision is subject to applicable state law. | |||
| w. | Choice of law | 18.F. | Florida |
| law will govern. However, this provision is subject to state | |||
| law and as otherwise disclosed in Exhibit I | |||
| to this Disclosure | |||
| Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, all mediation, arbitration, and litigation proceedings must occur in the state court of general jurisdiction closest to Orange County, Florida. If appropriate, the proceedings may occur in the United States District Court nearest to Casiola's corporate headquarters when the action is filed. However, this provision is subject to applicable state law.
This means that if a franchisee has a dispute with Casiola that escalates to mediation, arbitration, or litigation, the legal proceedings will likely take place in Florida, specifically in or near Orange County. This could present a significant inconvenience and added expense for franchisees who live outside of Florida, as they would need to travel to attend hearings and potentially hire local counsel.
The FDD also states that Florida law will govern the franchise agreement, but this is subject to state law and as otherwise disclosed in Exhibit I to the Disclosure Document. This implies that while Florida law generally applies, there might be exceptions or specific situations where the laws of another state could be relevant. Prospective franchisees should carefully review Exhibit I to understand any potential deviations from Florida law.
It is important for potential Casiola franchisees to consider the implications of the forum selection and choice of law provisions. They should consult with a legal professional to understand their rights and obligations under the franchise agreement, particularly regarding dispute resolution and the potential costs and burdens associated with litigating in Florida.