Does the Coffee News agreement specify that Maine courts have personal jurisdiction over the parties?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2 Choice of Law and Consent To Jurisdiction. This Agreement shall be governed by the laws of the State of Maine. Franchisor and Franchisee agree that any legal or equitable action for claims, debts or obligations arising out of, or to enforce the terms of, this Agreement may be brought by either party in the United States District Court for the District of Maine, or in any courts of the State of Maine, and that such court shall have personal jurisdiction over the parties and the venue of the action shall be appropriate in such court.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the franchise agreement specifies that Maine courts have personal jurisdiction over both the franchisor and the franchisee.
Specifically, the agreement states that any legal action related to the agreement can be brought in the United States District Court for the District of Maine or in any courts of the State of Maine. The agreement explicitly states that these courts will have personal jurisdiction over both parties, and that the venue is appropriate in those courts.
This clause means that a Coffee News franchisee consents to being sued in Maine, regardless of where their franchise is located. This is a common practice in franchising, as it provides the franchisor with a consistent legal environment. However, it could create additional expense and difficulty for a franchisee should they need to defend themselves in a lawsuit in Maine.