Where must legal proceedings not subject to arbitration be brought for Fly To Fit franchise disputes?

According to Fly To Fit's 2024 Franchise Disclosure Document, any legal proceedings not required to be submitted to arbitration must be brought in the United States District Court where Fly To Fit Franchise's headquarters is located. If there is no federal jurisdiction over the dispute, the proceedings will be brought in the court of record of the state and county where Fly To Fit's headquarters is located. The franchisee consents to the jurisdiction of these courts and waives any objection to the venue. This means that franchisees may have to travel to the location of Fly To Fit's headquarters to resolve legal disputes, which could increase legal costs.

This requirement applies to any legal proceeding that is not subject to mandatory arbitration. Arbitration is a common method of dispute resolution in franchising, but certain types of disputes may be excluded from arbitration, such as those involving intellectual property rights or requests for injunctive relief. In those cases, or if arbitration is not required, the franchisee must be prepared to litigate in the specified courts.

The FDD also specifies that the non-prevailing party in any legal proceeding, including arbitration, will be responsible for paying the prevailing party's attorney fees, costs, and other expenses. This could create a significant financial risk for franchisees who pursue legal action against Fly To Fit and do not win their case. Franchisees should carefully consider these factors before initiating any legal proceedings against Fly To Fit.