Does the Crown Gold Exchange franchise agreement limit litigation brought for breach of the agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.4 Time Limitation. Any arbitration or other legal action arising from or related to this Agreement must be instituted within two years from the date such party discovers the conduct or event that forms the basis of the arbitration or other legal action. The foregoing time limit does not apply to claims (i) by one party related to non-payment under this Agreement by the other party, (ii) for indemnity under Article 16, or (iii) related to unauthorized use of Confidential Information or the Marks.
- 17.5 Venue Other Than Arbitration. For any legal proceeding not required to be submitted to arbitration, the parties agree that any such legal proceeding will be brought in the United States District Court where Crown Gold Franchising's headquarters is then located. If there is no federal jurisdiction over the dispute, the parties agree that any such legal proceeding will be brought in the court of record of the state and county where Crown Gold Franchising's headquarters is then located. Each party consents to the jurisdiction of such courts and waives any objection that it, he or she may have to the laying of venue of any proceeding in any of these courts.
- 17.6 Legal Costs. In any legal proceeding (including arbitration) related to this Agreement or any guaranty, the non-prevailing party shall pay the prevailing party's attorney fees, costs and other expenses of the legal proceeding. "Prevailing party" means the party, if any, which prevailed upon the central litigated issues and obtained substantial relief.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, any arbitration or legal action related to the Franchise Agreement must be initiated within two years from the date the party discovers the event that forms the basis of the action. This limitation does not apply to claims related to non-payment, indemnity, or unauthorized use of confidential information or the Crown Gold Exchange's marks.
For legal proceedings not subject to arbitration, the agreement specifies that such proceedings must be brought in the United States District Court where Crown Gold Franchising's headquarters is located. If there is no federal jurisdiction, the proceedings will be brought in the court of record of the state and county where Crown Gold Franchising's headquarters is located. Each party consents to the jurisdiction of these courts and waives any objections to the venue.
The franchise agreement also stipulates that in any legal proceeding, including arbitration, related to the agreement or any guaranty, the non-prevailing party is responsible for paying the prevailing party's attorney fees, costs, and other expenses. The prevailing party is defined as the party that obtained substantial relief on the central litigated issues.