Under the Deka Lash Area Development Agreement, in which city and state must all claims be brought?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Area Developme nt Agreement | Summary |
|---|---|---|
| t. Integration/merger clause | 10.6 | Only the terms of the Area Development Agreement are binding (subject to state law). Any representations or promises made outside of the disclosure document and the Area Development Agreement may not be enforceable. |
| Dispute resolution by arbitration or mediation | 9 | You must mediate and arbitrate claims against us. (subject to applicable state law). |
| v. Choice of forum | 9 | All claims must be brought in Pittsburgh, Pennsylvania (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 pertaining to the Area Development Agreement must be brought in Pittsburgh, Pennsylvania. This is subject to applicable state law, meaning that depending on the specific circumstances and the laws of the franchisee's state, this clause may or may not be fully enforceable.
This "choice of forum" clause is a standard legal provision in franchise agreements. It dictates the location where any legal disputes between the franchisee and Deka Lash will be resolved. By specifying Pittsburgh, Pennsylvania, Deka Lash ensures that all legal proceedings will occur in a location convenient for them, which could potentially create a disadvantage for franchisees who may be located far from Pennsylvania.
Prospective Deka Lash franchisees should be aware of this clause and consider the potential costs and inconveniences associated with having to litigate or arbitrate any disputes in Pittsburgh. It is advisable to consult with a legal professional to understand the implications of this clause and whether it is enforceable under the laws of their state. Understanding the choice of forum is crucial before entering into an Area Development Agreement with Deka Lash.