Does the Deck Medic franchise agreement require litigation to be conducted outside of my state?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- F.
A provision requiring that litigation be conducted outside this state.
This shall not preclude you from entering into an agreement, at the time of litigation, to conduct litigation at a location outside this state.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the franchise agreement's stipulations regarding out-of-state litigation vary based on the franchisee's location. For instance, the Michigan FDD Amendment explicitly states that any provision requiring litigation to be conducted outside of Michigan is void and unenforceable against the franchisee. However, this does not prevent a franchisee from agreeing to out-of-state litigation at the time the dispute arises.
Conversely, the Illinois Franchise Agreement Amendment addresses governing law and jurisdiction, stating that any provision designating jurisdiction and venue outside of Illinois is void, although it allows for arbitration to occur outside the state. This means that while Deck Medic cannot force an Illinois franchisee into an out-of-state court for litigation, they can stipulate that arbitration occurs elsewhere.
Similarly, the North Dakota Franchise Agreement Amendment notes that provisions requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota. These state-specific amendments suggest that Deck Medic tailors its franchise agreement to comply with local franchise laws, providing some protection to franchisees against mandatory out-of-state litigation, but with possible exceptions for arbitration or voluntary agreements at the time of a dispute.