Where must litigation be held for disputes with Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
ffice that is closest to the location of our principal executive office, we agree that the place of arbitration will be a location that is in close proximity to the site of your business.
The Franchise Agreement requires that you consent to the jurisdiction of a court in close proximity to our principal executive offices. These provisions may not be enforceable under North Dakota law because North Dakota law precludes you from consenting to jurisdiction of any court outside of North Dakota.
Although the Franchise Agreement provides that the Franchise Agreement will be governed by and construed in accordance with the laws of the State of Minnesota, we agree that the laws of the State of North Dakota will govern the Franchise Agreement.
A contractual requirement that you sign a general release may be unenforceable under the laws of North Dakota.
Notwithstanding anything contained in the Franchise Agreement to the contrary, each party shall bear its owns costs and expenses in connection with any enforcement action brought by either party under the Franchise Agreement.
To the extent any provisions of the Franchise Agreement or requires you to consent to a waiver of exemplary or punitive damages, these provisions will be deleted from the Agreements.
To the extent any provisions of the Franchise Agreement requires you to consent to a waiver of trial by jury, these provisions will be deemed null and void.
Each provision of this Addendum to the Franchise Disclosure Document shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the North Dakota Franchise Investment Law are met independently, without reference to this Addendum to the Franchise Disclosure Document, and only to the extent such provision is a then valid requirement of the statute.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to the 2025 Face Foundrie FDD, the location for litigation depends on the state where the franchise is purchased. The Franchise Agreement typically requires franchisees to consent to the jurisdiction of a court near Face Foundrie's principal executive offices. However, this may not be enforceable under North Dakota law, which prevents franchisees from consenting to jurisdiction outside of North Dakota.
For franchisees in Washington, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington. The arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
For franchisees in Rhode Island, even though the Franchise Agreement says the laws of Minnesota apply, § 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."