In Michigan, can Goldfish Swim School require litigation to be conducted outside of the state?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ent of the state of Michigan, the Michigan Franchise Investment Law shall not apply to this transaction, the relationship between Franchisor and Developer or this Agreement.
- C. Consent to Jurisdiction. Any action brought by either party, including any claim for injunctive relief, except those claims required to be submitted to arbitration, shall only be brought in the appropriate state court located in or serving Oakland County, Michigan. The parties waive all questions of personal jurisdiction or venue for the purposes of carrying out this provision. This exclusive choice of jurisdiction and venue provision shall not restrict the ability of the parties to confirm or enforce judgments or arbitration awards in any appropriate jurisdiction.
- D. Cumulative Rights and Remedies. No right or remedy conferred upon or reserved to Franchisor or Developer by this Agreement is intended to be, nor shall be deemed, exclusive of any other right or remedy herein or by law or equity provided or permitted, but each shall be in addition to every other right or remedy.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School FDD, the franchise agreement specifies that any legal action, excluding claims requiring arbitration, must be initiated in the state court located in or serving Oakland County, Michigan. This means that Goldfish Swim School franchisees are generally required to litigate disputes with the franchisor in Michigan, and they waive any objections to personal jurisdiction or venue.
This requirement ensures that legal proceedings occur in a location convenient for Goldfish Swim School, as their headquarters are in Troy, Michigan. However, the agreement also states that this choice of jurisdiction does not prevent either party from enforcing judgments or arbitration awards in any appropriate jurisdiction. This allows for the enforcement of decisions made in Michigan in other locations if necessary.
For a prospective Goldfish Swim School franchisee, this clause means that if a dispute arises that leads to litigation, they will likely need to engage legal counsel in Michigan and be prepared to travel there for court proceedings. While this may add to the cost and complexity of resolving disputes, the FDD also includes a provision stating that certain unfair provisions are prohibited in Michigan, offering some protection to the franchisee.
Specifically, the FDD states that any provision requiring a franchisee to waive rights and protections provided by Michigan law is void and unenforceable. This suggests that while Goldfish Swim School can specify Michigan as the venue for litigation, they cannot use this provision to force franchisees to surrender their legal rights under Michigan franchise law.