Does the Devon Creek franchise agreement require franchisees and principals to waive questions of personal jurisdiction?

According to Devon Creek's 2024 Franchise Disclosure Document, the franchise agreement specifies that franchisees and their principals must submit to the jurisdiction of North Carolina courts. Specifically, franchisees and principals, unless legally prohibited, irrevocably submit to the sole and exclusive jurisdiction of the state and federal courts in North Carolina. This means that any legal disputes arising from the franchise agreement will be litigated in North Carolina, regardless of where the franchisee's business is located.

This requirement has significant implications for prospective Devon Creek franchisees. It means that if a franchisee wishes to sue Devon Creek, or if Devon Creek sues the franchisee, the legal proceedings must take place in North Carolina. This could involve significant travel expenses, legal fees, and the inconvenience of litigating a case far from the franchisee's home or business. Franchisees should consider these potential costs and logistical challenges before entering into an agreement with Devon Creek.

It is relatively common for franchise agreements to include clauses specifying the governing law and venue for disputes. Franchisors often choose their home state to ensure consistency and convenience in legal proceedings. However, franchisees should carefully evaluate the implications of such clauses and seek legal advice to understand their rights and obligations. Franchisees should also be aware that while they are submitting to jurisdiction in North Carolina, this submission is not valid where specifically prohibited by law.