Regarding Hck Hot Chicken, what is the required venue for arbitration?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.6 Venue. All disputes and claims not subject to mediation and arbitration under Section 10.1 or Section 10.2 must be litigated in the state or federal court with jurisdiction in the city of Franchisor's principal place of business (currently Sarasota, FL); provided that Franchisor has the option to bring suit against Area Developer in any state or federal court within the jurisdiction where any of Area Developer's Restaurants is or was located or where any of Area Developer's owners lives for those claims brought in accordance with Section 10.5. The parties consent to the exercise of personal jurisdiction over them by these courts, and to the propriety of venue in these courts for the purpose of this Development Agreement, and the parties waive any objections that they would otherwise have in this regard. Each of the parties specifically waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other party with respect thereto.
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken FDD, disputes that are not resolved through mediation and arbitration must be litigated in the state or federal court within the jurisdiction of the franchisor's principal place of business, which is currently Sarasota, FL. However, Hck Hot Chicken has the option to sue the Area Developer in any state or federal court where the Area Developer's restaurants are located or where any of the Area Developer's owners reside, specifically for claims brought in accordance with Section 10.5 of the agreement.
This means that as an Area Developer, you are generally required to litigate disputes in Sarasota, FL, which could involve travel and associated costs if you are not located in that area. However, Hck Hot Chicken retains the right to bring legal action against you in the jurisdiction where your restaurants are located or where you or your owners live, which could be more convenient for them.
The FDD also states that both parties consent to the exercise of personal jurisdiction by these courts and waive any objections to the venue. They also waive any defense of inconvenient forum and any requirement for bonds or other security. This indicates that Hck Hot Chicken aims to establish a clear legal framework for dispute resolution, potentially streamlining the process but also giving the franchisor some flexibility in choosing the venue for litigation.
It is important for prospective Area Developers to understand these venue provisions, as they can significantly impact the cost and convenience of resolving disputes with Hck Hot Chicken. Franchisees should consider consulting with a legal professional to fully understand their rights and obligations under the Development Agreement.