If there's a dispute with Deka Lash, where must claims be brought?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section In Franchise Agreement | Summary |
|---|---|---|
| Protected Area or any other Protected Area we have granted (subject to applicable state law). | ||
| s. Modification of the agreement | 16 | No modifications unless the parties agree in writing, except to Operations Manual. Revisions to the Manual will not unreasonably affect the franchisee’s obligations, including economic requirements, under the Agreement. |
| t. Integration/merger clause | 18 | Only the terms in the franchise agreement are binding (subject to federal or state law). Any representations or promises made outside the disclosure document and franchise agreement may not be enforceable. No claim in any franchise agreement(s) is intended to disclaim the express representations made in this Franchise Disclosure Document. |
| u. Dispute resolution by arbitration or mediation | 19.9; Franchise Agreement, Sch. C | You must mediate and arbitrate claims against us (subject to applicable state law). |
| v. Choice of forum | 19.2 | All claims must be brought in Pittsburgh, Pennsylvania (subject to applicable state law). |
| w. Choice of Law | 19.1 | Pennsylvania law governs (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, all claims against Deka Lash must be brought in Pittsburgh, Pennsylvania. This requirement applies to both the Area Development Agreement and the Franchise Agreement, although it is subject to applicable state law.
This "choice of forum" clause means that a Deka Lash franchisee would be required to travel to Pittsburgh, Pennsylvania to pursue any legal claims against the franchisor, regardless of where the franchise is located. This could significantly increase the cost and complexity of resolving disputes, as the franchisee would likely need to hire attorneys familiar with Pennsylvania law and bear the expense of travel and lodging for court proceedings.
It is important to note the phrase "subject to applicable state law," which appears in conjunction with the forum selection clause. This caveat suggests that in certain jurisdictions, state laws may override the requirement to litigate in Pittsburgh. Prospective franchisees should consult with legal counsel to understand how local laws might affect this provision. Franchisees should also be aware that Pennsylvania law governs the Franchise Agreement.