If the arbitration clause does not apply to a dispute involving Chicken Guy, how will the dispute be resolved?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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 31.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 31 (excluding this Section 31.B.).
- **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, if a court or arbitrator determines that the arbitration clause is unenforceable for a specific dispute, the parties agree that the arbitration clause will not apply, and the dispute will be resolved through a judicial proceeding. This means that instead of going to arbitration, the dispute will be handled in a federal or state court.
The Franchise Disclosure Document specifies that the franchisee must file any suit against Chicken Guy in the federal or state court having jurisdiction where Chicken Guy's principal offices are located at the time the suit is filed. However, Chicken Guy retains the option to file suit in the jurisdiction where its principal offices are located, where the franchisee resides or does business, where the franchised restaurant is or was located, or where the claim arose. The franchisee consents to the personal jurisdiction and venue of these courts.
This arrangement means that franchisees may have to travel to the location of Chicken Guy's principal offices to pursue legal action, which could increase their expenses. Conversely, Chicken Guy has more flexibility in choosing the venue for suits against franchisees. Prospective franchisees should consider this when evaluating the potential costs and burdens of resolving disputes with Chicken Guy.