Where must a developer file suit against Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- **D.
Consent To Jurisdiction.** Subject to Section 22.B. above and the provisions below, the parties agree that Developer shall file any suit against Chicken Guy only in the federal or state court having jurisdiction where Chicken Guy's principal offices are located at the time suit is filed.
Chicken Guy may file suit in the federal or state court located in the jurisdiction where its principal offices are located at the time suit is filed or in the jurisdiction where Developer resides or does business or where the Franchised Restaurant is or was located or where the claim arose.
Developer consents to the personal jurisdiction of those courts over Developer and to venue in those courts.
Notwithstanding the foregoing or anything to the contrary in this Agreement, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 22.B., then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with this Section 22 (excluding this Section 22.B.).
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a developer must file any lawsuit against Chicken Guy in the federal or state court that has jurisdiction where Chicken Guy's principal offices are located at the time the suit is filed. However, Chicken Guy has the option to file suit against the developer in the jurisdiction where its principal offices are located, where the developer resides or does business, where the franchised restaurant is or was located, or where the claim arose. The developer consents to the personal jurisdiction of those courts.
This means that if a Chicken Guy developer has a dispute with the company that leads to a lawsuit, the developer will likely have to travel to the location of Chicken Guy's principal offices to pursue the case. This could create a financial burden for the developer, as they will be responsible for travel costs, legal fees in a potentially unfamiliar jurisdiction, and other related expenses.
However, there is an exception to this rule. If a court or arbitrator determines that the arbitration clause is unenforceable with respect to a dispute that would otherwise be subject to arbitration, then the parties agree that the arbitration clause will not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with this section. This provides a potential avenue for developers to pursue legal action against Chicken Guy in a different jurisdiction if the arbitration clause is deemed unenforceable.
It is important for prospective Chicken Guy franchisees to carefully consider this clause and understand the potential implications of having to file suit in a specific jurisdiction. They should also consult with an attorney to discuss their legal rights and options in the event of a dispute with Chicken Guy.