factual

According to the Epcon Communities franchise agreement, where must litigation be filed?

Epcon_Communities Franchise · 2025 FDD

Answer from 2025 FDD Document

the undersigned agrees to venue and jurisdiction in United States District Court for the Southern District in Columbus, Ohio, or the Common Pleas Court of Franklin County, Ohio.

    1. The provisions described in Section 13.7 (Arbitration and Venue) and Section 20.3 (Venue) of the Franchise Agreement are hereby modified by adding the following to the end of Section 13.7 and Section 20.3 of the Franchise Agreement:
    • "Nothing in this Agreement shall limit Franchisee's rights to file a lawsuit in any court of competent jurisdiction in the State of Maryland alleging a cause of action arising under the Maryland Franchise Laws. In connection therewith, the parties agree to service of process in any manner provided for by the Maryland Franchise Laws. Any claims arising under the Maryland Franchise Laws must be brought within three years after the grant of the franchise."

Source: Item 23 — RECEIPTS (FDD pages 86–280)

What This Means (2025 FDD)

According to the 2025 Epcon Communities Franchise Disclosure Document, franchisees agree to venue and jurisdiction in the United States District Court for the Southern District in Columbus, Ohio, or the Common Pleas Court of Franklin County, Ohio, in the event Epcon Communities files a civil suit seeking temporary, preliminary and/or permanent injunctive relief or other relief as set forth in Section 14.4 of the Franchise Agreement. This means that if Epcon Communities needs to take legal action against a franchisee for specific types of violations, such as those requiring immediate court intervention, the case will be heard in one of the specified Ohio courts.

This requirement ensures that Epcon Communities can pursue legal remedies in a location convenient for them, potentially increasing costs and logistical challenges for franchisees who do not reside in Ohio. Franchisees should be aware of this venue provision and consider the potential implications of having to litigate disputes in Ohio. It is also important to note that this venue requirement applies only when Epcon Communities is seeking injunctive relief; other types of disputes may be subject to arbitration as described in the FDD.

However, the addendum to the Franchise Agreement for the state of Maryland modifies the venue provision, stating that nothing in the agreement shall limit a franchisee's rights to file a lawsuit in any court of competent jurisdiction in the State of Maryland alleging a cause of action arising under the Maryland Franchise Laws. Any claims arising under the Maryland Franchise Laws must be brought within three years after the grant of the franchise. This modification ensures that Maryland franchisees have the right to pursue legal claims related to Maryland franchise laws within their own state, providing them with a more accessible legal venue for specific types of disputes.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.