Where will legal proceedings not subject to arbitration take place for Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| provision does not limit our right to modify the | ||
| Manual or system specifications. | ||
| t. Integration/merger | Only the terms of the agreement are binding | |
| clause | ||
| (subject to state law). Any representations or | ||
| promises outside of the disclosure document | ||
| and franchise agreement (or MUDA) may not | ||
| be enforceable. However, no claim made in | ||
| any franchise agreement (or MUDA) is | ||
| intended to disclaim the express | ||
| representations made in this Disclosure | ||
| Document. | ||
| u. Dispute resolution by | All disputes are resolved by arbitration (except | |
| arbitration or mediation | ||
| for injunctive relief) (subject to applicable state | ||
| law). | ||
| v. Choice of forum | Arbitration will take place in Idaho (subject to | |
| applicable state law). Any legal proceedings | ||
| not subject to arbitration will take place in the | ||
| District Court of the United States, in the | ||
| district where our headquarters is then located, | ||
| or if this court lacks jurisdiction, the state | ||
| courts of the state and county where our | ||
| headquarters is then located (subject to | ||
| applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 29–33)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, legal proceedings not subject to arbitration will take place in specific courts, with some stipulations.
The FDD states that any legal proceedings not subject to arbitration will occur in the District Court of the United States. This will be in the district where Crown Gold Exchange's headquarters is located at that time. However, if the District Court lacks jurisdiction, the legal proceedings will take place in the state courts of the state and county where Crown Gold Exchange's headquarters is located.
It is important to note that these stipulations are subject to applicable state law, which means that the specific location of legal proceedings could be affected by the laws of the relevant state.
For a prospective franchisee, this means that while arbitration is the primary method of dispute resolution, any court proceedings will likely occur in Idaho, as that is where Crown Gold Exchange's headquarters is located. However, this could change if the headquarters moves, or if state law dictates otherwise.