Where must a Churchs Chicken Developer file a lawsuit against Cajun?

According to the 2025 Churchs Chicken Franchise Disclosure Document, a developer must file any lawsuit against Cajun in the federal or state court that has jurisdiction where Cajun's principal offices are located at the time the suit is filed. However, Churchs Chicken (Cajun) has more flexibility; Cajun can file suit against the developer in the federal or state court where its principal offices are located, where the developer resides or does business, where the Development Area or any Franchised Restaurant is or was located, or where the claim arose.

This clause dictates the venue for legal disputes, meaning the specific court where a lawsuit must be initiated. It essentially gives Churchs Chicken the upper hand in determining where a lawsuit will be heard, as they have multiple options for venue, while the developer is restricted to the location of Churchs Chicken's principal offices. This could create an imbalance of power, as the developer may be forced to litigate in a location far from their own business operations and legal resources.

This type of clause is relatively common in franchise agreements, as franchisors often seek to consolidate legal proceedings in their home jurisdiction for convenience and consistency. However, prospective franchisees should carefully consider the implications of such a clause, as it could increase their costs and logistical challenges in the event of a dispute with Churchs Chicken. It is important for developers to understand this clause and factor it into their decision-making process before entering into a franchise agreement with Churchs Chicken.