factual

Where is Desi District's headquarters located for the purpose of determining the arbitration location?

Desi_District Franchise · 2024 FDD

Answer from 2024 FDD Document

Provision Section in franchise or other agreement Summary
v. Choice of forum FA: §§ 17.1; 17.5 MUDA: § 7 Arbitration will take place where our headquarters is located (currently, Frisco, Texas) (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 44–48)

What This Means (2024 FDD)

According to Desi District's 2024 Franchise Disclosure Document, the location of arbitration proceedings is determined by the location of Desi District's headquarters. Currently, Desi District's headquarters is located in Frisco, Texas. This is subject to applicable state law.

This means that if a dispute arises between a franchisee and Desi District that proceeds to arbitration, the arbitration hearings will be held in Frisco, Texas, regardless of where the franchisee's business is located. This could create additional expenses for the franchisee, who would need to travel to Texas for the proceedings.

Furthermore, any legal proceedings not subject to arbitration will take place in the District Court of the United States, in the district where Desi District's headquarters is then located, or if this court lacks jurisdiction, the state courts of the state and county where their headquarters is then located, subject to applicable state law. Franchisees should consider the potential costs and inconvenience associated with this forum selection clause when evaluating the Desi District franchise opportunity.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.