If a Coffee News franchisee is involved in litigation, which court has jurisdiction?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| v. Choice of forum. | Section 16.2, Exhibit A | Litigation must be in U.S. District Court for the District of Maine. |
| w. Choice of law. | Section 16.2, Exhibit A | Maine laws apply. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 25–27)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, any litigation involving a Coffee News franchise must occur in the U.S. District Court for the District of Maine. Furthermore, the franchise agreement specifies that Maine laws will govern the legal proceedings. This is detailed in Item 17, which outlines dispute resolution terms.
This stipulation means that a Coffee News franchisee, regardless of their location, would be required to litigate any disputes with Coffee News in Maine's federal court, potentially incurring significant travel and legal expenses. They would also need to become familiar with Maine's legal statutes, as those laws would be applied to the case.
Choice of forum clauses are common in franchise agreements, as they allow the franchisor to manage legal disputes in a location convenient for them. However, franchisees should carefully consider the potential costs and burdens associated with litigating out-of-state before investing in a Coffee News franchise.