If a legal proceeding is not subject to arbitration, where will it take place for Desi District?
Desi_District Franchise · 2024 FDDAnswer 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, any legal proceedings not subject to arbitration will take place in specific courts, with the location depending on where Desi District's headquarters is located at that time.
Specifically, the legal proceedings will occur in the District Court of the United States in the district where Desi District's headquarters is located. However, if this court lacks jurisdiction, the proceedings will take place in the state courts of the state and county where Desi District's headquarters is then located. Currently, Desi District's headquarters is located in Frisco, Texas.
This means that a franchisee could potentially be required to litigate in Texas, regardless of where their franchise is located. Franchisees should be aware of this and consider the potential costs and inconveniences associated with litigating in a distant jurisdiction. It is also important to note the clause 'subject to applicable state law' which may influence the enforceability of this provision depending on the franchisee's location.