Does the franchisee consent to the personal jurisdiction of the courts where Chicken Guy can file suit?
Chicken_Guy Franchise · 2025 FDDAnswer 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 Chicken Guy's 2025 Franchise Disclosure Document, the franchisee consents to the personal jurisdiction of specific courts. The franchisee agrees that Chicken Guy can file suit against them in the federal or state court located in the jurisdiction where Chicken Guy's principal offices are located, where the franchisee resides or does business, where the franchised restaurant is or was located, or where the claim arose. By signing the franchise agreement, the franchisee consents to the personal jurisdiction and venue of these courts.
This means that if Chicken Guy decides to sue a franchisee, they have several options regarding where to file the lawsuit. They can choose a court in the location of their principal offices, the franchisee's residence or business, or where the restaurant is or was located. This gives Chicken Guy some strategic advantage in choosing a location that may be more convenient or favorable to their case.
For a prospective franchisee, this clause means they may have to travel to a different jurisdiction to defend themselves in court if Chicken Guy chooses to file suit outside of the franchisee's home jurisdiction. It is important for franchisees to understand this and factor in potential legal costs and travel expenses when evaluating the franchise opportunity. Franchisees should consult with an attorney to fully understand the implications of this consent to jurisdiction clause.