If litigation is required for an Extreme Art Studio franchise, in which court must it generally be commenced?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, litigation generally must be commenced in the state or federal court of general jurisdiction closest to their then-current principal place of business, which is currently in Eden Prairie, Minnesota. However, Extreme Art Studio and the franchisee can enforce any arbitration orders and awards in the courts of the state(s) in which the franchisee is domiciled or where their Extreme Art Studio Business is located. This is all subject to applicable state law.

This means that if a dispute between Extreme Art Studio and a franchisee escalates to litigation, the lawsuit would typically be filed in a court near Extreme Art Studio's headquarters in Eden Prairie, Minnesota. However, there is an exception allowing either party to enforce arbitration decisions in the franchisee's home state or the state where the Extreme Art Studio is located. This could be beneficial for a franchisee who may find it difficult or expensive to litigate a case in Minnesota.

It's important to note that this clause is subject to applicable state laws, which could potentially modify or supersede these provisions. Prospective franchisees should consult with an attorney to understand how these forum and enforcement provisions might affect them, given the laws of their specific state. The FDD also indicates that disputes must first go through mediation and arbitration, except for certain claims, before litigation is an option.