Where is the non-exclusive jurisdiction for legal actions related to the Chesters EFA?

According to Chesters's 2025 Franchise Disclosure Document, franchisees consent to the non-exclusive jurisdiction of courts located in Jefferson County, Alabama, for any legal actions or proceedings related to the Equipment Finance Agreement (EFA). This means that while Chesters can bring a lawsuit against a franchisee in Jefferson County, Alabama, the franchisee may be able to bring a suit against Chesters in another jurisdiction.

This clause also stipulates that franchisees waive any right to a trial by jury in such actions or proceedings and waive any right to assert that Jefferson County is an inconvenient forum. This waiver of jury trial is not unusual in franchise agreements. The waiver of inconvenient forum means that franchisees cannot argue that Jefferson County is not a suitable location for the lawsuit, even if the franchisee is located far from Alabama.

This section of the FDD also states that the EFA is governed by applicable Federal Law and the laws of the State of Alabama, excluding conflicts of law principles. It also states that Secured Party is an FDIC-insured institution with its main office in Alabama. These stipulations ensure that the agreement is interpreted under a consistent legal framework, which is the law of Alabama, where Chesters's secured party has its main office.