factual

Where must judicial actions brought by Cd One Price Cleaners against the franchisee be brought?

Cd_One_Price_Cleaners Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 23.3 Consent to Jurisdiction. Subject to the arbitration obligations in Section 23.2, Franchisee and its owners agree that all judicial actions brought by Franchisor against Franchisee or its owners, or by Franchisee or its owners against Franchisor or its affiliates or their respective owners, officers, agents, or employees, must be brought exclusively in the state or federal court of general jurisdiction in Chicago, Illinois. Franchisee (and each owner) irrevocably submits to the jurisdiction of such courts and waive any objection he, she or it may have to either jurisdiction or venue. Notwithstanding the foregoing, Franchisor may bring an action for a temporary restraining order or for temporary or preliminary injunctive relief, or to enforce an arbitration award, in any federal or state court in the state in which Franchisee resides or the Store is located.

Source: Item 23 — Receipts (FDD pages 72–263)

What This Means (2025 FDD)

According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, any judicial actions initiated by Cd One Price Cleaners against a franchisee must be brought exclusively in the state or federal court of general jurisdiction in Chicago, Illinois. The franchisee irrevocably submits to the jurisdiction of these courts and waives any objections to jurisdiction or venue. This means that regardless of where the franchise is located, the franchisee may have to travel to Chicago for any court proceedings initiated by Cd One Price Cleaners.

However, there is an exception to this rule. Cd One Price Cleaners retains the right to initiate actions for a temporary restraining order, temporary or preliminary injunctive relief, or to enforce an arbitration award in any federal or state court located in the state where the franchisee resides or where the store is located. This allows Cd One Price Cleaners to seek immediate legal remedies in the franchisee's local jurisdiction under certain circumstances, potentially providing a faster and more convenient legal recourse for the franchisor in those specific situations.

This clause is fairly standard in franchise agreements, as it establishes a clear venue for legal disputes. While it may seem disadvantageous to the franchisee, it provides predictability and consistency for Cd One Price Cleaners in managing legal matters across its franchise network. Prospective franchisees should consider the potential costs and inconvenience of litigating in Chicago when evaluating this franchise opportunity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.