In South Dakota, are provisions in the Face Foundrie Franchise Agreement restricting jurisdiction or venue to a forum outside of South Dakota void?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provisions in the Franchise Agreement restricting jurisdiction or venue to a forum outside of the State of South Dakota or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the South Dakota Franchise Act.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, any provisions in the Franchise Agreement that restrict jurisdiction or venue to a forum outside of South Dakota are considered void. This applies specifically to claims that would otherwise be enforceable under the South Dakota Franchise Act.
For a prospective Face Foundrie franchisee in South Dakota, this means that if a dispute arises that is covered by the South Dakota Franchise Act, they cannot be forced to litigate the matter in another state. The franchisee retains the right to pursue legal action within South Dakota, regardless of what the standard Franchise Agreement might stipulate about out-of-state jurisdiction or venue.
This protection is significant because it ensures that Face Foundrie franchisees in South Dakota are not disadvantaged by having to travel to a distant location or navigate unfamiliar legal systems to resolve disputes. It also means that South Dakota law will apply to these specific types of claims, providing a legal framework that is familiar and potentially more favorable to the franchisee.