Do I waive my right to a jury trial under the Chesters EFA?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Choice of Law; Waiver of Jury Trial: Secured Party is an FDIC-insured institution with its main office in Alabama.
This EFA is governed by applicable Federal Law and the laws of the State of Alabama with respect to interest and matters that are material to the determination of interest.
This EFA is otherwise governed by the law of the State of Alabama, excluding conflicts of law principles.
If any amount charged, collected or due exceeds the maximum amount permitted by applicable law, Secured Party shall make necessary adjustments to eliminate such excess.
You consent to the non-exclusive jurisdiction of the courts located in Jefferson County, Alabama in any action or proceeding relating to this EFA, YOU WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH ACTION OR PROCEEDING, AND YOU WAIVE ANY RIGHT TO ASSERT THIS IS AN INCONVENIENT FORUM.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the Equipment Finance Agreement (EFA) includes a waiver of the right to a jury trial. Specifically, the document states that you waive any right to a trial by jury in any action or proceeding relating to the EFA. This waiver is part of a broader agreement that is governed by Federal Law and the laws of the State of Alabama, particularly concerning interest and related matters. The non-exclusive jurisdiction for any legal actions is in the courts located in Jefferson County, Alabama.
This means that as a Chesters franchisee, you are agreeing to resolve any disputes related to the EFA through means other than a jury trial, such as a bench trial where a judge makes the decision. This can have significant implications, as jury trials are often perceived as more favorable to the average person due to the involvement of a jury of peers. By waiving this right, you are potentially limiting your options for dispute resolution and agreeing to a legal process that may be more streamlined but less influenced by public opinion.
It is important to note that the FDD also mentions provisions related to the Washington Franchise Investment Protection Act, indicating that certain rights and remedies, including the right to a jury trial, may not be enforceable if they unreasonably restrict or limit claims under that Act. Additionally, for franchisees subject to franchise registration/disclosure laws in certain states like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, there may be additional considerations regarding waivers and disclaimers.
Prospective Chesters franchisees should carefully consider the implications of waiving their right to a jury trial and consult with legal counsel to understand their rights and obligations under the EFA and any applicable state laws. Understanding the governing law, jurisdiction, and waiver provisions is crucial before entering into the franchise agreement.