Where must all legal actions involving a Closet Storage Concepts franchise be commenced?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| s. | Modification of this | 11.1 | The Franchise Agreement may only be modified by |
|---|---|---|---|
| agreement | written amendment signed by both parties. | ||
| t. | Integration/merger clauses | 11.1 | The Franchise Agreement is the entire agreement between the parties (subject to state law). Notwithstanding the foregoing, nothing in any agreement is intended to disclaim the express representations made in the Franchise Disclosure Document, any other exhibits or amendments. |
| u. | Dispute resolution by arbitration or mediation | 11.2 | All disputes must be mediated, and then, if needed, litigated. |
| v. | Choice of forum | 11.3 | All actions must be commenced in the Courts of then- current State and County where our corporate headquarters is located (currently Camden County, New Jersey, or the United States District Court, District of New Jersey) (subject to applicable state law) |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 49–55)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, all legal actions must be commenced in the courts of the state and county where Closet Storage Concepts's corporate headquarters is located. Currently, this is Camden County, New Jersey, or the United States District Court, District of New Jersey. This is subject to applicable state law.
This clause dictates the venue where a franchisee must bring any legal claims against Closet Storage Concepts, or vice versa. It means a franchisee may have to travel to New Jersey to litigate any disputes, which can significantly increase legal costs due to travel, local counsel fees, and other logistical expenses. This requirement applies regardless of where the franchise is located.
Forum selection clauses are common in franchise agreements. They allow the franchisor to manage legal challenges in a location familiar and convenient to them. While this offers Closet Storage Concepts an advantage, franchisees should consider the potential financial burden and inconvenience of out-of-state litigation when evaluating the franchise opportunity. It is important to consult with a legal professional to understand the full implications of this clause before signing the Franchise Agreement.