Where must a Gold Star franchisee file any lawsuits against the company relating to the franchise agreement?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
22.3 Consent to Jurisdiction. FRANCHISEE consents and agrees that the following courts will have personal jurisdiction over FRANCHISEE in all lawsuits relating to or arising out of this Agreement, and hereby submits to the jurisdiction of the following courts and irrevocably waives any defense FRANCHISEE may have of lack of personal jurisdiction in any such lawsuits filed in these courts: (a) all courts included within the state court system of the State of Ohio; and (b) all courts of the United States of America sitting within the State of Ohio, including, without limitation, all United States District Courts within the State of Ohio. 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 Gold Star's 2025 Franchise Disclosure Document, a franchisee must file any lawsuits against Gold Star relating to the franchise agreement in specific courts within the State of Ohio. These courts include all courts within the state court system of Ohio and all courts of the United States of America sitting within the State of Ohio, including all United States District Courts within the State of Ohio.
Furthermore, the FDD specifies that venue will be proper in the state court of the county where Gold Star has its principal place of business, which is presently Clermont County, Ohio, or the United States District Court for the Southern District of Ohio, Western Division. The document also clarifies that if any of these courts are abolished, the lawsuit must be filed in the state or federal court in Ohio that most closely approximates the subject matter jurisdiction of the abolished court, or in any of the courts that are not abolished.
This clause in the franchise agreement means that a Gold Star franchisee is limited to filing lawsuits against the company in Ohio, regardless of where the franchisee's business is located. This could increase the franchisee's expenses in the event of a legal dispute, as they would need to travel to Ohio and potentially hire Ohio-based attorneys. It is a common practice in franchising for the franchise agreement to specify a particular jurisdiction for dispute resolution, but franchisees should consider the implications of this clause before signing the agreement.