Where must any legal action or proceeding arising under the Dq Treat agreement be brought?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.2 Governing Law and Jurisdiction. This Agreement will be governed by and construed in accordance with the laws of Delaware, excluding conflict of law principles.
Any legal action or proceeding arising under this Agreement will be brought exclusively in the federal or state courts located in the State of Delaware, and the parties hereby irrevocably consent to personal jurisdiction and venue therein.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, any legal action or proceeding arising under the Dq Treat agreement must be brought exclusively in the federal or state courts located in the State of Delaware. Both Dq Treat and the franchisee irrevocably consent to personal jurisdiction and venue in Delaware.
This means that if a Dq Treat franchisee has a legal dispute with the company, whether it involves a breach of contract, a tort claim, or any other legal issue related to the franchise agreement, the lawsuit must be filed in either a federal or state court within Delaware. The franchisee is agreeing to this location, regardless of where their Dq Treat franchise is actually located. This can create additional expenses for the franchisee.
This clause is fairly standard in franchise agreements. Franchise companies often choose a specific jurisdiction to ensure consistency and predictability in legal proceedings. It is important for a prospective franchisee to understand that they may incur additional travel and legal fees associated with litigating a dispute in Delaware, regardless of where their franchise is located.