factual

Where may Cajun file suit against the Guarantor under the Churchs Chicken Guaranty?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

6. Governing Law and Jurisdiction.

  • (b) Cajun 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 Guarantor resides or does business or where the Franchised Restaurant is or was located or where the claim arose. Guarantor consents to the personal jurisdiction of those courts over Guarantor and to venue in those courts.

Source: Item 23 — RECEIPT (FDD pages 68–406)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, Cajun may file suit against the Guarantor in specific jurisdictions. Cajun 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, Cajun can file suit in the jurisdiction where the Guarantor resides or conducts business. Additionally, Cajun can file suit where the Franchised Restaurant is or was located, or where the claim arose. The Guarantor consents to the personal jurisdiction of these courts and to the venue in these courts.

This means that a Churchs Chicken franchisee's guarantor could be sued in multiple locations depending on where Cajun's principal offices are, where the guarantor lives or works, where the restaurant operates, or where the dispute originated. This broad jurisdiction clause gives Cajun considerable flexibility in choosing a court that is most favorable to its interests.

Prospective franchisees and their guarantors should carefully consider this clause, as it could result in them having to defend a lawsuit in a location far from their home or business. It is advisable to seek legal counsel to fully understand the implications of this jurisdiction clause before signing the Guaranty.

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.