Is the choice of forum for Chem Dry franchise litigation subject to state law?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement and other agreements | Summary |
|---|---|---|
| any dispute, notwithstanding any state | ||
| law to the contrary. | ||
| v. Choice of forum | Section 17I | Litigation in Tennessee (subject to state |
| law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the choice of forum for litigation is subject to state law. Specifically, litigation must occur in Tennessee, but this is subject to state law. This means that while Chem Dry designates Tennessee as the primary location for legal disputes, state laws could potentially influence or modify this arrangement.
This provision is important for prospective franchisees as it clarifies where they may be required to engage in legal proceedings with Chem Dry. The clause "subject to state law" suggests that certain state statutes could override or modify the agreement's forum selection clause. Franchisees should be aware of the implications of this clause, especially if they reside in a state far from Tennessee, as it could involve significant travel and legal expenses if litigation becomes necessary.
It is advisable for potential Chem Dry franchisees to consult with a legal professional to understand the specific state laws that could impact the forum selection clause. Understanding these nuances can help franchisees prepare for potential legal challenges and make informed decisions about entering into the franchise agreement. Franchisees should consider the costs and inconveniences associated with litigating in Tennessee, as well as any potential protections or modifications offered by their own state's laws.