What is the name of the federal court district that is a proper venue for Gold Star franchise lawsuits?
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.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a proper venue for lawsuits relating to the franchise agreement includes the United States District Court for the Southern District of Ohio, Western Division. This means that if Gold Star or the franchisee initiates a lawsuit pertaining to the franchise agreement in federal court, the suit can be filed in this specific district court.
This clause is significant for prospective franchisees as it dictates where they may be required to litigate any disputes with Gold Star. By agreeing to the franchise terms, the franchisee consents to the jurisdiction and venue of the specified courts, waiving any right to transfer or change the venue. This could potentially increase costs and logistical challenges for a franchisee if they are located far from the Southern District of Ohio, Western Division.
It is important to note that this clause applies to lawsuits relating to or arising out of the franchise agreement. The FDD also states that any lawsuits filed by a franchisee against Gold Star must be filed in one of these courts. However, lawsuits filed by Gold Star against the franchisee may be filed in any of these courts or in any court in which jurisdiction and venue are proper. Franchisees should seek legal counsel to fully understand the implications of these venue and jurisdiction clauses before signing the agreement.