Where must legal proceedings not subject to arbitration be brought for a Chocolate Fish Coffee franchise dispute?
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 Chocolate Fish Coffee's 2024 Franchise Disclosure Document, any legal proceeding not required to be submitted to arbitration must be brought in specific courts depending on jurisdiction. If there is federal jurisdiction over the dispute, the legal proceeding will be brought in the United States District Court where Chocolate Fish Franchising's headquarters is located.
If there is no federal jurisdiction, the proceeding will occur in the court of record of the state and county where Chocolate Fish Franchising's headquarters is located. The document states that each party consents to the jurisdiction of these courts and waives any objection to the venue.
This means that a Chocolate Fish Coffee franchisee may be required to litigate disputes in a specific location chosen by the franchisor, which could be inconvenient and costly for the franchisee. It is important to note that this only applies to legal proceedings not subject to arbitration, as the franchise agreement also includes provisions for resolving disputes through arbitration.