What is the current principal place of business of Extreme Art Studio for jurisdiction purposes?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
SUBJECT TO SECTIONS 17.5, 17.6 AND 17.7 ABOVE AND THE PROVISIONS BELOW, WE AND YOU (AND YOUR OWNERS) AGREE THAT ALL ACTIONS ARISING UNDER THIS FRANCHISE AGREEMENT OR OTHERWISE AS A RESULT OF THE RELATIONSHIP BETWEEN YOU AND US MUST BE COMMENCED IN THE STATE OR FEDERAL COURT OF GENERAL JURISDICTION CLOSEST TO OUR THEN-CURRENT PRINCIPAL PLACE OF BUSINESS (CURRENTLY, EDEN PRAIRIE, MINNESOTA), AND WE AND YOU (AND EACH OWNER) IRREVOCABLY CONSENT TO THE EXCLUSIVE JURISDICTION OF THOSE COURTS AND WAIVE ANY OBJECTION TO EITHER THE JURISDICTION OF OR VENUE IN THOSE COURTS.
NONETHELESS, WE AND YOU (AND YOUR OWNERS) AGREE THAT WE HAVE THE OPTION TO BRING SUIT AGAINST YOU IN THE COURTS OF THE STATE OR STATES IN WHICH YOU ARE DOMICILED OR THE FRANCHISED BUSINESS IS LOCATED FOR: (i) CLAIMS BROUGHT IN ACCORDANCE WITH SECTION 17.7; OR (ii) TO ENFORCE ANY ARBITRATION ORDERS AND AWARDS.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the brand's current principal place of business is Eden Prairie, Minnesota. This is relevant to the venue where any legal actions arising from the franchise agreement must be commenced. Specifically, any action must be started in the state or federal court of general jurisdiction closest to Eden Prairie, Minnesota. Both Extreme Art Studio and the franchisee irrevocably consent to the exclusive jurisdiction of those courts.
This clause means that franchisees may have to travel to Minnesota to resolve legal disputes with Extreme Art Studio, which could increase their legal costs. However, Extreme Art Studio retains the option to bring a suit against the franchisee in the courts of the state where the franchisee is domiciled or where the franchised business is located for claims brought in accordance with section 17.7 or to enforce any arbitration orders and awards.
It is important for prospective franchisees to understand this jurisdiction clause and consider the potential implications of having legal disputes resolved in Minnesota. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement.