Does the Cream franchise agreement require franchisees and their owners to irrevocably submit to the jurisdiction of the specified court?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the obligation to arbitrate under 17.G above and the provisions below, you and your owners agree that all actions arising under this Agreement or otherwise as a result of the relationship between you and us must be commenced in the court nearest to our or, as applicable, our successor's or assign's then-current principal place of business (currently, Columbus, Ohio), and you (and each owner) irrevocably submit to the jurisdiction of that court and waive any objection you (or the owner) might have to either the jurisdiction of or venue in that court.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees and their owners must irrevocably submit to the jurisdiction of a specific court. The franchise agreement states that any legal actions arising from the agreement or the relationship between the franchisee and Cream must be initiated in the court closest to Cream's principal business location, which is currently in Columbus, Ohio. Franchisees and their owners also waive any objections to the jurisdiction or venue of that court. This requirement is subject to the obligation to arbitrate certain disputes as outlined in the franchise agreement.
This means that if a Cream franchisee has a dispute with Cream that results in a lawsuit, the franchisee will likely have to pursue that legal action in Columbus, Ohio, regardless of where the franchise is located. This could increase the franchisee's legal costs due to travel and potentially needing to hire Ohio-based attorneys. It also means that the laws of Ohio will govern the franchise agreement, except to the extent governed by the United States Trademark Act of 1946 or other United States federal law.
However, the FDD also notes an exception for franchisees in Minnesota. Minnesota law prohibits Cream from requiring franchisees to conduct litigation outside of Minnesota or from waiving their rights to any procedure, forum, or remedies provided by Minnesota law. Therefore, the requirement to submit to jurisdiction in Ohio may not be enforceable for Cream franchisees operating in Minnesota. Prospective franchisees should consult with a legal professional to understand the implications of these clauses in their specific circumstances.