What is the geographic location of the exclusive venue for disputes related to the Floyds 99 agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the designated venue for resolving disputes related to the franchise agreement is within the state and federal courts of Colorado. This means that, generally, any legal action initiated by either Floyds 99 or the franchisee must be pursued in Colorado courts. Both parties agree to this arrangement, consenting to the jurisdiction and venue of these courts.
However, there is an exception to this rule. If the laws of the state where the franchisee resides prohibit designating Colorado as the jurisdiction and venue, then the laws of the franchisee's state will take precedence. This provision is included to ensure compliance with varying state laws that may protect franchisees from being forced to litigate in a distant or inconvenient location.
This clause has significant implications for prospective Floyds 99 franchisees. It is crucial to understand the venue and jurisdiction rules in their own state of residence. If a franchisee's state laws do not allow for out-of-state venue selection, they may have the right to litigate disputes with Floyds 99 in their home state, regardless of what the franchise agreement initially stipulates. This could save considerable time and expense in legal proceedings.