If a dispute with Checkersrallys is not arbitrated, which courts have jurisdiction?

According to Checkersrallys's 2025 Franchise Disclosure Document, both the Franchise Agreement and the Development Agreement specify the choice of forum for dispute resolution. If a dispute is not arbitrated, then Florida State and Federal courts have jurisdiction. This is subject to state law, as detailed in Exhibits I and J of the FDD.

This means that if a franchisee and Checkersrallys end up in a legal dispute and do not pursue arbitration, the lawsuit must be filed in either a Florida state court or a federal court in Florida. This could create additional costs for a franchisee who does not live in Florida, as they would need to travel to Florida for any court proceedings. They would also likely need to hire legal counsel familiar with Florida law.

Choice of forum clauses are common in franchise agreements, as they allow the franchisor to manage legal disputes in a location convenient for them. Prospective franchisees should carefully consider the implications of this clause, especially if they live far from the designated forum. It is important to consult with a legal professional to understand the potential costs and challenges associated with litigating a dispute in a specific jurisdiction.