Where must actions for injunctive relief be filed for the Chicken Guy Development Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN DEVELOPMENT AGREEMENT | SUMMARY |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | Sections 22A. & B. | Subject to state law, either party will submit any claim, controversy, or dispute arising out of the agreement to non-binding mediation and, thereafter, to arbitration. The mediation and arbitration will take place in the city where our principal offices are located at the time the demand for mediation or arbitration is filed, which is currently Orlando, Florida. |
| v. Choice of forum | Section 22.D. | Subject to state law and subject to the mediation and arbitration requirement, any actions for injunctive relief must be filed in the jurisdiction where our principal offices are located at the time suit is filed, which is currently Orlando, Florida while simultaneously submitting the matter to mediation and then arbitration. |
| w. Choice of law | Section 22.C. | Subject to state law, Florida law applies. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, any actions for injunctive relief related to the Development Agreement must be filed in the jurisdiction where Chicken Guy's principal offices are located at the time the suit is filed. Currently, Chicken Guy's principal offices are located in Orlando, Florida. This requirement is subject to state law and the condition that the matter is simultaneously submitted to mediation and then arbitration.
This means that if a Chicken Guy developer seeks injunctive relief against Chicken Guy, or vice versa, the lawsuit must be filed in Orlando, Florida, regardless of where the developer's territory is located (unless state law dictates otherwise). This clause ensures that legal disputes are handled in a location convenient for Chicken Guy.
However, the FDD also notes that for developers in Minnesota, Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Chicken Guy from requiring litigation to be conducted outside Minnesota. Similarly, for developers in California, the FDD states that the choice of forum provision may not be enforceable under California law. For developers in New York, Chicken Guy's right to obtain injunctive relief exists only after proper proofs are made and the appropriate authority has granted such relief.
Prospective Chicken Guy developers should be aware of this forum selection clause and understand that they may be required to travel to Orlando, Florida, to pursue legal action. They should also consult with an attorney to determine whether this clause is enforceable in their specific state, given the exceptions noted for Minnesota, California and New York.