Does the Chem Dry franchisee irrevocably submit to the personal jurisdiction of the courts in Tennessee, and waive any objection to jurisdiction or venue in those courts?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
SUBJECT TO SECTION 17.F. ABOVE AND THE PROVISIONS BELOW, FRANCHISEE AND ITS OWNERS AGREE THAT ALL ACTIONS ARISING UNDER THIS AGREEMENT OR OTHERWISE AS A RESULT OF THE RELATIONSHIP BETWEEN THE PARTIES MUST BE COMMENCED IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF TENNESSEE AND FRANCHISEE (AND EACH OWNER AND GUARANTOR OF FRANCHISEE) IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF THOSE COURTS AND WAIVES ANY OBJECTION FRANCHISEE (OR THE OWNER OR GUARANTOR) MIGHT HAVE TO EITHER THE JURISDICTION OF OR VENUE IN THOSE COURTS. FRANCHISEE AND ITS OWNERS
AGREE THAT CDI 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 BUSINESS IS LOCATED.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, franchisees and their owners agree that any legal actions arising from the franchise agreement or the relationship between the parties must be initiated in a state or federal court within Tennessee. Franchisees (including owners and guarantors) irrevocably submit to the personal jurisdiction of those courts and waive any objections to jurisdiction or venue.
This means that if a Chem Dry franchisee has a legal dispute with Chem Dry, they will likely need to pursue the matter in Tennessee, regardless of where their franchise is located. This could involve additional travel expenses and the need to hire legal counsel familiar with Tennessee law.
However, Chem Dry 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 provides Chem Dry with some flexibility in pursuing legal action against a franchisee.
It is important for prospective Chem Dry franchisees to understand this clause and consider the potential implications before signing the franchise agreement. They should consult with legal counsel to fully understand their rights and obligations under the agreement.