Does the Gold Star franchise agreement specify that the franchisee irrevocably waives any right the franchisee may have to transfer or change the venue in any such lawsuits filed in these courts?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE consents and agrees that venue will be proper in any of the following courts in all lawsuits relating to or arising out of this Agreement and irrevocably waives any right FRANCHISEE may have to transfer or change the venue in any such lawsuits filed in these courts: (a) the state court of the county where the COMPANY has its principal place of business (presently Clermont County, Ohio); and (b) the United States District Court for the Southern District of Ohio, Western Division. In the event any of these courts are abolished, FRANCHISEE agrees that venue will be proper in the state or federal court in Ohio that most closely approximates the subject matter jurisdiction of the abolished court as well as any of these courts that are not so abolished. Any and all lawsuits filed by FRANCHISEE against the COMPANY relating to or arising out of this Agreement will be required to be filed in one of these courts. Any and all lawsuits filed by the COMPANY against FRANCHISEE may be filed in any of these courts or in any court in which jurisdiction and venue are proper. In all lawsuits relating to or arising out of this Agreement, FRANCHISEE consents and agrees that FRANCHISEE may be served with process outside the State of Ohio in the same manner of service that may be made within the State of Ohio by any person authorized to make service by the laws of the state, territory, possession or country in which service is made or by any duty qualified attorney in such jurisdiction. FRANCHISEE waives any defense it may have of insufficiency of service of process relating to such service. This method of service will not be the exclusive method of service available in such lawsuits and will be available in addition to any other method of service allowed by law.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, franchisees agree that venue will be proper in specific courts for lawsuits relating to the franchise agreement. The franchisee irrevocably waives any right to transfer or change the venue in lawsuits filed in these courts. These courts include the state court of the county where Gold Star has its principal place of business, which is currently Clermont County, Ohio, and the United States District Court for the Southern District of Ohio, Western Division.
This means that any lawsuit a franchisee brings against Gold Star must be filed in one of these specified courts. However, Gold Star has the option to file lawsuits against the franchisee in any of these courts or in any court where jurisdiction and venue are proper. This clause ensures that Gold Star can bring a suit against a franchisee in the franchisee's home jurisdiction, which may be more convenient for Gold Star.
This section of the franchise agreement also states that the franchisee consents to the personal jurisdiction of all courts within the state court system of Ohio and all U.S. District Courts within Ohio. The franchisee also waives any defense of lack of personal jurisdiction in lawsuits filed in these courts. Furthermore, the franchisee consents to being served with legal process outside of Ohio.