Where must a Golden Krust Caribbean Restaurant franchisee file any controversy or claim relating to the release?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9. Enforcement. This Release and all claims relating to this Release shall be governed by and construed under the law of state noted in the Franchise Agreement. Franchisee and Guarantors shall file any controversy or claim whatsoever arising out of or relating to this Release or the enforcement of the promises in this Release or with regard to the interpretation, formation, or breach of this Release in the court where Franchisor's principal offices are located. Franchisor will file any controversy or claim whatsoever arising out of or relating to this Release or the enforcement of the promises in this Release or with regard to the interpretation, formation, or breach of this Release in the court where its principal offices are located, where Franchisee resides or does business, or where the claim arose.
Source: Item 23 — RECEIPT (FDD pages 35–153)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, a franchisee must file any controversy or claim relating to the release or enforcement of promises in the release in the court where Golden Krust Franchising, Inc.'s principal offices are located.
This means that if a franchisee has a dispute regarding the release, they may be required to litigate the matter in the jurisdiction where Golden Krust Franchising, Inc. has its main office, regardless of where the franchise is located or where the franchisee resides. This could potentially increase the franchisee's legal costs, as they may need to hire attorneys familiar with the laws and procedures of the jurisdiction where the franchisor's principal offices are located.
Conversely, Golden Krust Franchising, Inc. has the option to file any controversy or claim against the franchisee in the court where its principal offices are located, where the franchisee resides or does business, or where the claim arose. This provides Golden Krust Franchising, Inc. with more flexibility in choosing the venue for legal proceedings against a franchisee.