Where is the venue for proceedings related to the Devon Creek agreement, unless injunctive relief is sought?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.3 Governing Law and Venue.
This Agreement is made in, and shall be substantially performed, in the State of North Carolina.
Any claims, controversies, disputes or actions arising out of this Agreement shall be governed, enforced and interpreted pursuant to the laws of the State of North Carolina.
Franchisee and its Principals, except where specifically prohibited by law, hereby irrevocably submit themselves to the sole and exclusive jurisdiction of the state and federal courts in North Carolina.
Franchisee and its Principal(s) hereby waive all questions of personal jurisdiction for the purpose of carrying out this provision.
- 20.4 Mutual Benefit.
Franchisee, each Principal, if any, and Franchisor acknowledge that the parties' agreement regarding applicable state law and forum set forth in Section 20.3 provide each of the parties with the mutual benefit of uniform interpretation of this Agreement and any dispute arising hereunder.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, the venue for any claims, controversies, disputes, or actions arising out of the Franchise Agreement, with the exception of claims for injunctive or other extraordinary relief, will be in the state and federal courts in North Carolina. The Franchise Agreement is made in, and shall be substantially performed, in the State of North Carolina and shall be governed, enforced and interpreted pursuant to the laws of the State of North Carolina.
This means that any legal disputes with Devon Creek, unless it involves Devon Creek seeking an injunction, will be litigated in North Carolina, regardless of where the franchisee's business is located. An injunction is a court order that requires a party to do or cease doing a specific action.
This clause has significant implications for prospective franchisees. Franchisees may incur substantial travel and legal expenses if they need to pursue a claim against Devon Creek or defend themselves against a claim by Devon Creek. Franchisees should consider this factor, along with the cost and potential burden, when evaluating the franchise opportunity.