If a dispute with Checkers is not arbitrated, which courts are used as the choice of forum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY | |
|---|---|---|---|
| t. | Integration/merger clause | Section 18.11 | Only the terms of Franchise Agreement are binding (subject to state law); any representations or promises made outside the disclosure document and franchise agreement may not be enforceable. However, nothing in the Franchise Agreement or any related agreement is intended to disclaim our representations made in this Disclosure Document. |
| u. | Dispute resolution by negotiation, mediation & arbitration | Section 18.05 | All controversies, disputes or claims shall on demand by either party be arbitrated. |
| v. | Choice of forum | Section 18.05 | If dispute is not arbitrated, then Florida state and federal courts (subject to state law, see Exhibits I and J). |
| w. | Choice of law | Section 18.07 | Subject to state law, Florida law applies generally, except for applicable franchise laws of other states (see Exhibits I and J). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 66–71)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, if a dispute is not resolved through arbitration, the designated forum for legal proceedings is in Florida State and Federal courts. This is subject to state law, as detailed in Exhibits I and J of the FDD.
This means that any legal action a franchisee might want to bring against Checkers, or vice versa, will likely need to be filed and pursued in Florida courts, regardless of where the franchisee's restaurant is located. This could involve significant travel and legal expenses for a franchisee located outside of Florida.
It is important to note that this choice of forum is not absolute, as it is subject to state law. This implies that certain state franchise laws could override the forum selection clause, potentially allowing a franchisee to bring a case in their home state. Prospective franchisees should carefully review Exhibits I and J and consult with legal counsel to understand how these provisions apply to them specifically.
Choice of forum clauses are common in franchise agreements, as they provide the franchisor with a consistent legal environment. However, franchisees should be aware of the potential costs and inconveniences associated with litigating disputes in a distant forum.