Where will litigation related to the Checkersrallys franchise agreement be instituted?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
I further agree that any litigation arising out of or related to this Agreement, any breach of this Agreement, and any and all relations and/or disputes between myself on the one hand, and Franchisee or Franchisor on the other hand, whether sounding in contract, tort, or otherwise, will be instituted exclusively in the U.S. District Court sitting nearest to Franchisor's corporate headquarters (currently, Tampa, Florida). I agree that any dispute as to the aforementioned venue will be submitted to and resolved exclusively by such aforementioned court. Nonetheless, I agree that Franchisee or Franchisor may enforce this Agreement and any awards in the courts of the state or states in which I am domiciled or the Franchised Restaurant is located.
I, FRANCHISEE AND FRANCHISOR IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY ME, FRANCHISEE OR FRANCHISOR. I hereby waive and covenant never to assert or claim that said venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, without limitation, any claim under the judicial doctrine of forum non conveniens).
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, any litigation arising from the franchise agreement, including breaches or disputes, must be instituted exclusively in the U.S. District Court nearest to Checkersrallys's corporate headquarters, which is currently located in Tampa, Florida. Franchisees agree to submit any disputes regarding the venue to this court and waive any claims that the venue is improper or inconvenient.
However, Checkersrallys retains the right to enforce the agreement and any awards in the courts of the state where the franchisee is domiciled or where the franchised business is located. This means that while the franchisee must initiate litigation in the specified Florida court, Checkersrallys can pursue enforcement actions in the franchisee's home state.
This clause also includes a waiver of trial by jury for any action, proceeding, or counterclaim related to the franchise agreement. This is a significant point for prospective franchisees to consider, as it means disputes will be resolved by a judge rather than a jury. Franchisees also waive the right to claim that the venue is inappropriate.