In what forum must disputes with Jack In The Box be resolved?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | § 19 | Includes one- (1) year prohibition on engaging in, having an interest in, or performing any services for certain restaurant businesses. (1) |
| s. | Modification of the agreement | § 20.H | Must be in writing and signed by both parties. |
| t. | Integration/merger clause | § 20.A and § 20.B | Only the terms of the Franchise Agreement (including exhibits) are binding (subject to state law). Except for the statements contained in this disclosure document, you may not rely on any other oral or written statements you may have been provided about the franchise. Notwithstanding the foregoing, nothing in this or any related agreement is intended to disclaim the express representations made in this disclosure document, its exhibits, and amendments. |
| u. | Dispute resolution by arbitration or mediation | § 20.C | Subject to applicable state law, non-binding mediation. |
| V. | Choice of forum | § 20.C.3 and § 20.D | Subject to applicable state law, state courts located in San Diego, California; federal courts located in the Southern District of California. You and the Company waive trial by jury in any action brought against each other. |
| w. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 70–81)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, disputes must be resolved in state courts located in San Diego, California, or federal courts located in the Southern District of California. This applies to disputes arising from the Franchise Agreement. Both Jack In The Box and the franchisee waive their right to a jury trial.
For disputes arising from the Nontraditional License Agreement, the FDD indicates that non-binding mediation is the required method of dispute resolution, subject to applicable state law. However, the document does not specify the location for these mediations.
For prospective franchisees, this means that any legal action against Jack In The Box regarding the standard Franchise Agreement must be pursued in the specified California courts, regardless of where the franchise is located. This could increase legal costs for franchisees located outside of California. The requirement to use non-binding mediation for Nontraditional License Agreements suggests an attempt to resolve those disputes outside of court, but franchisees should be aware that mediation may not always be successful.