factual

What does the Cinnaholic developer irrevocably waive regarding jurisdiction for actions not subject to mandatory arbitration?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

FOR ACTIONS THAT ARE NOT SUBJECT TO MANDATORY ARBITRATION UNDER SECTION 21.2, THE DEVELOPER HEREBY SUBMITS AND IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS FOR THE DISTRICT WHERE FRANCHISOR'S PRINCIPAL EXECUTIVE OFFICE IS LOCATED ON THE DATE OF FILING OF THE ACTION AND AGREES NOT TO RAISE, AND HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION BASED UPON FORUM NON CONVENIENS OR ANY OTHER OBJECTION IT MAY NOW HAVE OR HEREAFTER HAVE TO SUCH JURISDICTION OR VENUE.

Source: Item 23 — RECEIPT (FDD pages 62–269)

What This Means (2025 FDD)

According to Cinnaholic's 2025 Franchise Disclosure Document, for legal actions not requiring mandatory arbitration, the developer (franchisee) submits to the exclusive jurisdiction of federal and state courts in the district where Cinnaholic's main executive office is located when the action is filed. The developer agrees not to object to this jurisdiction or venue.

Specifically, the developer irrevocably waives, to the fullest extent permitted by law, any objection based on forum non conveniens. This legal doctrine allows a court to dismiss a case if another court or forum is better suited to hear it. By waiving this, the Cinnaholic developer agrees to have disputes heard in the specified jurisdiction, even if another location might seem more convenient or appropriate.

This clause impacts a prospective Cinnaholic franchisee by limiting their ability to argue that a lawsuit should be heard in their local court. They are bound to the jurisdiction where Cinnaholic's principal executive office is located, which could increase their legal costs and inconvenience if a dispute arises. Franchise agreements often contain clauses specifying jurisdiction and venue to provide clarity and predictability for both parties, though the specific implications depend on the location of Cinnaholic's main office relative to the franchisee's business.

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.