Under the Checkersrallys franchise agreement, what defense do franchisees irrevocably waive regarding the location of suits, actions, or proceedings?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
18.07 Jurisdiction and Venue.SUBJECT TO SECTION 18.05 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, FRANCHISEE AND FRANCHISEE'S OWNERS AGREE THAT FRANCHISOR MAY ENFORCE THIS AGREEMENT AND ANY ARBITRATION ORDERS AND
AWARDS IN THE COURTS OF THE STATE OR STATES IN WHICH FRANCHISEE IS DOMICILED OR THE FRANCHISED BUSINESS IS LOCATED**.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, franchisees waive the defense of an inconvenient forum regarding the location of legal proceedings. Specifically, franchisees agree that any legal actions must be initiated in the state or federal court closest to Checkersrallys's corporate headquarters, which is currently in Tampa, Florida.
This means that a franchisee, regardless of where their restaurant is located, may be required to litigate any disputes with Checkersrallys in Tampa, Florida. This could result in increased costs for the franchisee, such as travel expenses, attorney fees for local counsel in Florida, and the inconvenience of being far from their business and home during legal proceedings.
However, Checkersrallys can enforce the agreement and any arbitration awards in the courts of the state where the franchisee is domiciled or where the franchised business is located. This provides Checkersrallys with the flexibility to pursue legal action against the franchisee in a location that is more convenient for Checkersrallys. The franchisee also agrees that service of process does not need to be served personally or within the state of Florida.