What is the geographic scope of the courts that can litigate controversies related to the Cool Binz Mutual Release?

According to the 2025 Cool Binz Franchise Disclosure Document, any legal disputes arising from the Mutual Release must be settled in specific courts located in Michigan. Specifically, lawsuits must be filed in the courts of general jurisdiction of Washtenaw County, Michigan, or the United States District Court presiding over Ann Arbor, Michigan. This means that franchisees may be required to travel to Michigan to resolve disputes, regardless of where their franchise is located.

This requirement could increase legal costs for franchisees, as they may need to hire attorneys familiar with Michigan law and potentially pay for travel expenses to attend court proceedings. It also means that Cool Binz has chosen to litigate these specific disputes in a location that is convenient for them, which may not be the case for the franchisee.

It is important to note that the FDD also includes specific clauses for Maryland and Washington, stating that the Mutual Release may not apply to liability under the Maryland Franchise Registration and Disclosure Law or claims arising under the Franchise Investment Protection Act in Washington. This implies that franchisees in those states may have additional legal avenues available to them, despite the Michigan venue specified in the Mutual Release. Prospective franchisees should carefully consider these venue and jurisdiction clauses and consult with legal counsel to understand their rights and obligations.