What does the Face Foundrie Addendum state regarding jurisdiction or venue for litigation outside of Illinois?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
FORUM FOR LITIGATION. The following language is added to the end of Section 18.04 of the Franchise Agreement: NOTWITHSTANDING THE FOREGOING, MINN. STAT. SEC. 80C.21 AND MINN. RULE 2860.4400J PROHIBIT US, EXCEPT IN CERTAIN SPECIFIED CASES, FROM REQUIRING LITIGATION TO BE CONDUCTED OUTSIDE OF MINNESOTA. NOTHING IN THIS AGREEMENT WILL ABROGATE OR REDUCE ANY OF FRANCHISEE'S RIGHTS UNDER MINNESOTA STATUTES CHAPTER 80.C OR FRANCHISEE'S RIGHTS TO ANY PROCEDURE, FORUM OR REMEDIES THAT THE LAWS OF THE JURISDICTION PROVIDE. 4. FORUM FOR LITIGATION. The following language is added to the end of Section 18.04 of the Franchise Agreement: Franchisee may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- 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.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie FDD, the franchise agreement outlines specific conditions regarding jurisdiction and venue for litigation, particularly in relation to Minnesota and Maryland. For franchisees operating in Minnesota, the addendum explicitly states that Minnesota law prohibits Face Foundrie from requiring litigation to be conducted outside of Minnesota, except in certain specified cases. This ensures that franchisees in Minnesota have the right to pursue legal remedies within their own state, as protected by Minnesota statutes. Similarly, for franchisees in Maryland, the addendum allows franchisees to bring actions in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This provision ensures that Maryland franchisees can address legal issues related to franchise registration and disclosure within their state's jurisdiction.
For actions not subject to mandatory arbitration, Face Foundrie's franchise agreement stipulates that franchisees submit to the exclusive jurisdiction of federal and state courts in the district where the franchisor's principal executive office is located. This means that any legal actions against Face Foundrie must be pursued in the specific district where Face Foundrie's main office is situated at the time the action is filed. Franchisees also waive any objections to this jurisdiction or venue, including those based on forum non conveniens, which argues that the chosen venue is inconvenient. This clause is designed to streamline legal proceedings and ensure consistency by centralizing litigation in the franchisor's home jurisdiction.
However, the FDD also includes addenda for other states like New York and Washington, which modify the standard agreement to comply with local franchise laws. For instance, the New York addendum ensures that releases are not enforced if prohibited by New York law, and the Washington addendum states that Washington law prevails in case of conflicts. These state-specific addenda highlight Face Foundrie's effort to tailor its franchise agreements to align with varying state regulations, providing franchisees with legal protections and rights as mandated by their local laws. Prospective franchisees should carefully review the addendum specific to their state to understand their rights and obligations regarding litigation and dispute resolution.