In the Floyds 99 guaranty, what specific courts are designated as the exclusive venue for disputes?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, if a claim is asserted in any legal proceeding involving the undersigned and the Franchisor, its officers, directors, managers or sales employees (collectively, "Franchisor Affiliates"), all parties agree that the exclusive venue for disputes between them shall be in the state and federal courts of Colorado, in Denver, Colorado and each waive any objection they may have to the personal jurisdiction of or venue in the state and federal courts of Colorado.
THE FRANCHISOR, THE FRANCHISOR AFFILIATES, AND THE UNDERSIGNED EACH WAIVE THEIR RIGHTS TO A TRIAL BY JURY.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the guaranty specifies that the state and federal courts of Colorado, located in Denver, Colorado, will serve as the exclusive venue for resolving disputes between the guarantor and Floyds 99, its officers, directors, managers, or sales employees. This means that any legal proceedings related to the guaranty must be initiated and conducted in these specific courts.
This clause ensures that all disputes are handled in a location that Floyds 99 deems suitable, which may be advantageous for them due to familiarity with local laws and court procedures. However, for a franchisee, this could mean incurring additional travel and legal expenses if they are not located in Colorado, as they would need to engage legal representation familiar with Colorado law and be prepared to litigate in Denver.
Furthermore, the guaranty includes a waiver of the right to a jury trial for all parties involved, including Floyds 99 and its affiliates. This means that any disputes will be resolved by a judge rather than a jury, which can significantly impact the outcome of a legal proceeding. Franchisees should carefully consider the implications of these venue and jury trial waiver clauses before signing the guaranty, as they can have a substantial effect on their legal rights and options in case of a dispute.