Under the Crawlspace Medic agreement, where is the venue for proceedings relating to the agreement, with the exception of actions including injunctive relief?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- e. THIS AGREEMENT SHALL BE INTERPRETED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF SOUTH CAROLINA, WITHOUT REFERENCE TO SOUTH CAROLINA CHOICE OF LAW PRINCIPLES.
COVENANTOR HEREBY IRREVOCABLY SUBMITS HIMSELF OR HERSELF TO THE JURISDICTION OF THE STATE AND FEDERAL COURTS OF THE STATE OF SOUTH CAROLINA.
COVENANTOR HEREBY WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION OR VENUE FOR THE PURPOSE OF CARRYING OUT THIS PROVISION.
COVENANTOR HEREBY AGREES THAT SERVICE OF PROCESS MAY BE MADE UPON COVENANTOR IN ANY PROCEEDING RELATING TO OR ARISING UNDER THIS AGREEMENT OR THE RELATIONSHIP CREATED BY THIS AGREEMENT BY ANY MEANS ALLOWED BY SOUTH CAROLINA OR FEDERAL LAW.
COVENANTOR FURTHER AGREES THAT VENUE FOR ANY PROCEEDING RELATING TO OR ARISING OUT OF THIS AGREEMENT SHALL BE IN SOUTH CAROLINA; PROVIDED, HOWEVER, WITH RESPECT TO ANY ACTION THAT INCLUDES INJUNCTIVE RELIEF OR OTHER EXTRAORDINARY RELIEF, FRANCHISOR OR FRANCH
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the venue for any proceeding relating to or arising out of the agreement will be in South Carolina. However, this does not apply to actions that include injunctive relief or other extraordinary relief, where the franchisor or franchisee may bring an action in any court that has jurisdiction over the covenantor.
This means that if a franchisee has a dispute with Crawlspace Medic that does not involve injunctive relief, they will likely have to travel to South Carolina to resolve it in court. This could add significant costs to any legal action, as the franchisee will need to pay for travel, accommodation, and potentially local legal representation.
However, if the dispute involves injunctive relief, such as preventing a franchisee from violating a non-compete agreement, Crawlspace Medic can bring the action in a court that has jurisdiction over the franchisee, which could be more convenient for them. Prospective franchisees should consider these venue provisions carefully and understand the potential implications before signing the Franchise Agreement.