What does a Chocolate Fish Coffee franchisee waive regarding the venue of any legal proceeding?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.5 Venue Other Than Arbitration. For any legal proceeding not required to be submitted to arbitration, the parties agree that any such legal proceeding will be brought in the United States District Court where Chocolate Fish Franchising's headquarters is then located.
If there is no federal jurisdiction over the dispute, the parties agree that any such legal proceeding will be brought in the court of record of the state and county where Chocolate Fish Franchising's headquarters is then located.
Each party consents to the jurisdiction of such courts and waives any objection that it, he or she may have to the laying of venue of any proceeding in any of these courts.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Chocolate Fish Coffee franchisees agree that for any legal proceeding not required to be submitted to arbitration, the proceeding will occur in the United States District Court where Chocolate Fish Coffee's headquarters is located. If there is no federal jurisdiction, the proceeding will occur in the state and county court where Chocolate Fish Coffee's headquarters is located.
Specifically, the franchisee consents to the jurisdiction of these courts. More importantly, the franchisee waives any objection to the venue (location) of any proceeding in these courts. This means a franchisee may be required to travel to the location of Chocolate Fish Coffee's headquarters for any legal proceedings, which could increase legal costs for the franchisee.
This is a common clause in franchise agreements. It ensures that Chocolate Fish Coffee can manage legal disputes in a location convenient for them. Prospective franchisees should consider the potential costs and inconvenience of litigating disputes far from their home or business location.