Does each party consent to the jurisdiction of the courts where Desi District's headquarters are located?

According to Desi District's 2024 Franchise Disclosure Document, both the franchisee and Desi District Franchise Group consent to the jurisdiction of the courts located where Desi District's headquarters are located for any legal proceedings not required to be submitted to arbitration. This means that if a lawsuit is filed that is not subject to arbitration, it must be brought in the specified courts.

Specifically, the FDD states that legal proceedings will be brought in the United States District Court where Desi District's headquarters is located. If there is no federal jurisdiction, the proceedings will occur in the state and county court of record where Desi District's headquarters is located. Each party agrees to the jurisdiction of these courts and waives any objection to the venue.

This clause is fairly standard in franchise agreements, as it provides clarity and predictability regarding where legal disputes will be resolved. It can benefit Desi District by centralizing litigation in its home jurisdiction, where it may be more familiar with the local laws and court procedures. However, it may present an inconvenience for franchisees located far from Desi District's headquarters, who would need to travel for court proceedings. Prospective franchisees should consider this factor, along with the costs associated with potential litigation, when evaluating the franchise opportunity.