Can a Gold Star franchisee transfer or change the venue of lawsuits filed in the specified 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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees waive their right to transfer or change the venue of lawsuits filed in specific courts. Franchisees consent to the jurisdiction of courts within the State of Ohio, including the state court system and U.S. District Courts. They also agree that venue is proper in the state court of the county where Gold Star has its principal place of business (Clermont County, Ohio) and the U.S. District Court for the Southern District of Ohio, Western Division.
This means that a Gold Star franchisee is legally bound to resolve disputes with Gold Star in the specified Ohio courts. The franchisee cannot move the lawsuit to a different location, even if it might be more convenient or cost-effective for them. This clause applies to all lawsuits relating to or arising out of the franchise agreement.
This requirement could create additional expenses and logistical challenges for franchisees located outside of Ohio, as they would need to travel to Ohio for any legal proceedings. It is a standard practice in franchising for the franchise agreement to specify a jurisdiction and venue for dispute resolution, but franchisees should carefully consider the implications of this clause before investing in a Gold Star franchise.