factual

What jurisdiction and venue govern disputes arising from the Checkers franchise agreement?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

10.07 Jurisdiction and Venue. SUBJECT TO SECTION 10.06 ABOVE AND THE PROVISIONS BELOW, YOU AND YOUR OWNERS IRREVOCABLY AGREE THAT: (A) ALL ACTIONS ARISING UNDER THIS AGREEMENT OR OTHERWISE AS A RESULT OF THE RELATIONSHIP BETWEEN FRANCHISEE AND FRANCHISOR MUST BE COMMENCED IN THE STATE OR FEDERAL COURT OF GENERAL JURISDICTION LOCATED CLOSEST TO OUR THEN CURRENT CORPORATE HEADQUARTERS (CURRENTLY TAMPA, FLORIDA); AND (B) ANY SUCH MATTER SHALL BE TRIED BY AND TO THE COURT SITTING WITHOUT A JURY, AND YOU WAIVE ANY RIGHT TO A JURY TRIAL. YOU IRREVOCABLY WAIVE, TO THE FULLEST EXTENT YOU MAY LAWFULLY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT, ACTION OR PROCEEDING, AND AGREE THAT SERVICE OF PROCESS FOR PURPOSES OF ANY SUCH SUIT, ACTION OR PROCEEDING NEED NOT BE PERSONALLY SERVED OR SERVED WITHIN THE STATE OF FLORIDA, BUT MAY BE SERVED WITH THE SAME EFFECT AS IF YOU WERE SERVED WITHIN THE STATE OF FLORIDA, BY CERTIFIED MAIL OR ANY OTHER MEANS PERMITTED BY LAW ADDRESSED TO YOU AT THE ADDRESS SET FORTH HEREIN. NONETHELESS, YOU AND YOUR OWNERS AGREE THAT WE MAY ENFORCE THIS AGREEMENT AND ANY ARBITRATION ORDERS AND AWARDS IN THE COURTS OF THE STATE OR STATES IN WHICH YOU ARE DOMICILED OR THE DEVELOPER BUSINESS IS LOCATED.

Source: Item 23 — RECEIPTS (FDD pages 92–384)

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, disputes must be commenced in the state or federal court of general jurisdiction located closest to Checkers' corporate headquarters, which is currently in Tampa, Florida. Franchisees also waive their right to a jury trial. However, Checkers can enforce the agreement and any arbitration orders in the courts of the state where the franchisee is domiciled or where the business is located.

This means that if a franchisee has a dispute with Checkers, they will likely need to travel to Florida to resolve it in court, unless the matter proceeds to arbitration. The franchisee also agrees to waive their right to a jury trial, meaning a judge will decide the outcome of the case.

There are exceptions to this rule. For example, the addendum for Illinois states that any provision in the franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois. Also, the FDD states that for claims arising under the Maryland Franchise Registration and Disclosure Law, a franchisee may commence a lawsuit against Checkers in Maryland, subject to the arbitration obligation under the Franchise Agreement.

It is important for prospective franchisees to understand these venue and jurisdiction provisions, as they can significantly impact the cost and convenience of resolving any potential disputes with Checkers. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement.

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.