factual

Where can Chicken Guy file a suit against a franchisee?

Q: Where can Chicken Guy file a suit against a franchisee?

- **D. Consent To Jurisdiction.** Subject to Section 31.B. above and the provisions below, the parties agree that Franchisee 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 Franchisee resides or does business or where the Franchised Restaurant is or was located or where the claim arose. Franchisee consents to the personal jurisdiction of those courts over Franchisee and to venue in those courts. Source: Item 22 — CONTRACTS (FDD page 50)

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

**D.

Consent To Jurisdiction.** Subject to Section 31.B. above and the provisions below, the parties agree that Franchisee 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 Franchisee resides or does business or where the Franchised Restaurant is or was located or where the claim arose.

Franchisee consents to the personal jurisdiction of those courts over Franchisee and to venue in those courts.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Chicken Guy Franchise Disclosure Document, Chicken Guy has options regarding where it can file a suit against a franchisee. Chicken Guy can file suit in the federal or state court located in the jurisdiction where its principal offices are located at the time the suit is filed. Alternatively, Chicken Guy can file suit in the jurisdiction where the franchisee resides or does business. Chicken Guy can also file suit where the franchised restaurant is or was located, or where the claim arose.

This provides Chicken Guy with flexibility in choosing a venue that is most convenient or advantageous for them. The franchisee consents to the personal jurisdiction of those courts, meaning they agree to be subject to the court's authority and venue in those locations. This clause is important as it sets the stage for any legal disputes that may arise between Chicken Guy and its franchisees, clarifying where such disputes can be litigated.

It is important to note that this is subject to Section 31.B of the franchise agreement, which likely refers to arbitration clauses. If a dispute is subject to arbitration, then the rules governing arbitration would take precedence over these jurisdictional clauses. Franchisees should be aware of these venue options and understand that they are agreeing to be sued in any of these locations, which could potentially increase their legal costs depending on their location relative to Chicken Guy's principal offices or the other specified jurisdictions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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