For actions not subject to mandatory arbitration, to which jurisdiction does a Face Foundrie franchisee irrevocably consent?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.04 Jurisdiction and Venue. For actions that are not subject to mandatory arbitration under Section 18.03, FRANCHISEE HEREBY SUBMITS AND IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS FOR THE DISTRICT WHERE FRANCHISOR'S PRINCIPAL EXECUTIVE OFFICE IS LOCATED ON THE DATE OF THE FILING OF THE ACTION, AND AGREES NOT TO RAISE AND HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION BASED UPON FORUM NON CONVENIENS OR ANY OTHER OBJECTION IT MAY NOW HAVE OR HEREAFTER HAVE TO SUCH JURISDICTION OR VENUE. Further, nothing herein contained shall bar Franchisor's right to obtain injunctive relief against threatened conduct that will cause irreparable harm.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a franchisee submits and irrevocably consents to the exclusive jurisdiction of the federal and state courts for the district where Face Foundrie's principal executive office is located on the date the action is filed, for actions not subject to mandatory arbitration. The franchisee also agrees not to raise any objection based upon forum non conveniens or any other objection to such jurisdiction or venue. This means that if a franchisee has a legal dispute with Face Foundrie that is not subject to arbitration, the lawsuit must be filed in the federal or state courts within the district where Face Foundrie's principal executive office is located at the time of filing the lawsuit.
This clause is significant because it dictates where a franchisee can sue Face Foundrie, potentially requiring the franchisee to litigate in a location far from their business or home. The franchisee also waives their right to argue that the forum is inconvenient, which is a common legal strategy to move a case to a more suitable location.
It is important to note that Face Foundrie retains the right to seek injunctive relief against threatened conduct that will cause irreparable harm, regardless of this clause. Injunctive relief is a court order that requires a party to do or refrain from doing a specific act. This means that Face Foundrie can seek an injunction against a franchisee in any jurisdiction where the conduct is occurring, regardless of the location of its principal executive office. Prospective franchisees should carefully consider the implications of this jurisdiction and venue clause, especially if they are located far from Face Foundrie's principal executive office.