In which courts can a Floyds 99 franchisee bring a cause of action against the franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions apply to all Franchises offered and sold to residents of the State of Maryland and Franchises to be operated in the State of Maryland:
Item 17 is amended as follows:
- c. You may bring any cause of action against us in any court of competent jurisdiction, including the state or federal courts of Maryland.
Both parties waive any objection to the jurisdiction of these courts or to venue in the state and federal courts of Colorado.
Notwithstanding the foregoing, if the laws of the state where the Associate resides prohibit the aforesaid designation of jurisdiction and venue, then such other state's laws shall control.
Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring wavier of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes.
Section 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."
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee in Maryland can bring a cause of action against Floyds 99 in any court of competent jurisdiction, including the state or federal courts of Maryland. This addendum applies specifically to franchises offered and sold to residents of Maryland and franchises to be operated in Maryland. This ensures that Maryland franchisees have the option to pursue legal action against Floyds 99 within their own state's legal system.
For franchisees outside of Maryland, the standard franchise agreement likely dictates the jurisdiction and venue for legal disputes. However, the FDD also states that if the laws of the state where the Associate resides prohibit the designation of jurisdiction and venue outlined in the agreement, then that state's laws will control. This suggests that while Floyds 99 typically prefers disputes to be resolved in Colorado courts, this may not always be enforceable depending on the franchisee's location and relevant state laws.
Furthermore, the addendum for Minnesota states that Minnesota law prohibits Floyds 99 from requiring litigation to be conducted outside of Minnesota. This ensures that Minnesota franchisees are able to litigate within their own state. Similarly, Rhode Island's Franchise Investment Act stipulates that any provision in a franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island is void with respect to a claim otherwise enforceable under that Act. Therefore, franchisees should carefully review the state-specific addenda to understand their rights regarding legal recourse and where they can bring a cause of action against Floyds 99.