What section of the Crawl Space Ninja franchise agreement specifies the choice of forum?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| v. | Choice of forum | Section 20.3 | Litigation takes place in Tennessee. (subject to state law) |
| w. | Choice of law | Section 20.3 | Tennessee law applies. (subject to state law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–41)
What This Means (2024 FDD)
According to Crawl Space Ninja's 2024 Franchise Disclosure Document, the choice of forum is specified in Section 20.3 of the franchise agreement. This section indicates that any litigation will take place in Tennessee, although this is subject to state law.
This means that if a Crawl Space Ninja franchisee has a legal dispute with the franchisor that results in a lawsuit, the case will be heard in a court in Tennessee, regardless of where the franchisee's business is located. This could create additional expenses for the franchisee, such as travel and legal fees, as they would need to hire counsel familiar with Tennessee law and potentially travel to Tennessee for court proceedings.
It is important for prospective Crawl Space Ninja franchisees to understand the implications of the choice of forum clause. Franchisees should consult with an attorney to discuss the potential costs and inconveniences associated with litigating in Tennessee. They should also consider whether the choice of forum clause is fair and reasonable, given the potential power imbalance between the franchisor and the franchisee. Franchisees should also be aware that the choice of law is also Tennessee, as specified in Section 20.3.