If any of the specified courts are abolished, where will venue be proper for Gold Star franchise lawsuits?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees agree that if any of the specified courts are abolished, venue will be proper in the Ohio state or federal court that most closely approximates the subject matter jurisdiction of the abolished court. Venue will also be proper in any of the courts that have not been abolished. This applies to lawsuits relating to or arising out of the Franchise Agreement.
This means that if the specific courts initially designated for lawsuits (the state court of Clermont County, Ohio, where Gold Star has its principal place of business, and the United States District Court for the Southern District of Ohio, Western Division) are no longer in existence, a similar court in Ohio will be selected to hear the case. This ensures that there is always a legal venue available for resolving disputes related to the franchise agreement.
For a prospective franchisee, this clause is important because it clarifies where legal disputes will be resolved, even if the original courts are abolished. It provides a degree of certainty and predictability in the event of legal action. Franchisees should be aware of this clause and understand that they are agreeing to resolve disputes in a specific jurisdiction and that the location could change if a court is abolished.