In what forum will litigation related to a Floyds 99 franchise take place?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| v. | Choice of forum | Section 24.4 | Litigation in Colorado (subject to state law). |
| W. | Choice of law | Section 24.4 | Colorado law applies (subject to state law). |
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| v. | Choice of forum | Section 13.4 | Litigation in Colorado (subject to |
| state law). | |||
| w. | Choice of law | Section 13.4 | Colorado (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, any litigation will take place in Colorado, although this is subject to state law. This applies both to the standard Franchise Agreement (Section 24.4) and the Development Agreement (Section 13.4). This means that if a franchisee has a legal dispute with Floyds 99, they will likely need to travel to Colorado to resolve it in court.
The choice of forum is an important consideration for prospective franchisees. Litigating in a distant forum can significantly increase legal costs due to travel expenses, local counsel fees, and other logistical challenges. It also means that the franchisee will be subject to the laws and legal procedures of Colorado, which may be different from those in their home state.
Franchise agreements often include forum selection clauses, and Colorado is where Floyds 99 is likely headquartered. While these clauses are generally enforceable, a franchisee may be able to challenge the clause if they can demonstrate that it is unreasonable or obtained through fraud or duress. Prospective franchisees should consult with an attorney to understand the implications of the forum selection clause and their rights in the event of a dispute with Floyds 99.