Where must litigation be conducted for disputes related to the Coffee News franchise?

According to Coffee News's 2025 Franchise Disclosure Document, any litigation regarding the franchise agreement must occur in a specific location. The FDD specifies that litigation must be conducted in the U.S. District Court for the District of Maine. This means that if a Coffee News franchisee has a legal dispute with the franchisor that results in a lawsuit, the case will be heard in the federal court located in Maine.

This requirement has significant implications for prospective franchisees. Franchisees must be prepared to travel to Maine for any litigation, which could involve substantial travel expenses, legal fees for local counsel, and the inconvenience of being away from their business and home. This could be a major disadvantage for franchisees located outside of Maine, as it increases the cost and complexity of resolving disputes with Coffee News.

Choice of forum clauses are common in franchise agreements, but the specific location can vary. Some franchisors may choose a location convenient to their headquarters, while others may be more flexible. Prospective franchisees should carefully consider the implications of the forum selection clause and factor in the potential costs and burdens of litigating in the specified location. It is advisable to consult with an attorney to fully understand the legal ramifications of this clause before signing the franchise agreement.