Does the Coffee News franchise agreement specify that the venue of action shall be appropriate in Maine courts?
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 any legal action must be brought in the state of Maine. Specifically, Coffee News and the franchisee agree that any legal or equitable action for claims, debts, or obligations arising from 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.
Furthermore, the agreement states that such courts will have personal jurisdiction over both parties, and the venue of the action will be appropriate in those courts. This means a franchisee would likely need to travel to Maine to resolve legal disputes with Coffee News.
This clause is fairly standard in franchise agreements, as it allows the franchisor to manage legal issues in a location familiar to them. Prospective franchisees should consider the potential costs and inconveniences of litigating in Maine if they do not reside there.