To what jurisdiction do franchisees irrevocably submit themselves for claims not resolved through arbitration with Hyper Kidz?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.4 You and we acknowledge that the execution of this Agreement and acceptance of the terms by the parties occurred in Howard County, Maryland, and further acknowledge that the performance of certain of your obligations arising under this Agreement, including, but not limited to, the payment of monies due hereunder and the satisfaction of certain training requirements of ours, shall occur in Howard County, Maryland.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees acknowledge that the execution of the agreement occurred in Howard County, Maryland. Franchisees also acknowledge that the performance of certain obligations, such as payments and training requirements, will occur in Howard County, Maryland.
This means that if a dispute with Hyper Kidz is not resolved through arbitration, the franchisee irrevocably submits to the jurisdiction of Howard County, Maryland for legal proceedings. This is where the agreement was executed and where key obligations are performed.
For a prospective franchisee, this has significant implications. It means that any legal action against Hyper Kidz, if not settled through arbitration, must be pursued in Howard County, Maryland, regardless of where the franchisee's Hyper Kidz location is situated. This could involve considerable travel expenses, hiring local counsel, and dealing with a court system unfamiliar to the franchisee. Franchisees should consider this factor and its potential costs when evaluating the franchise opportunity.