Where is the venue and jurisdiction for any lawsuit arising from the Jack In The Box franchise agreement?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
D. Governing Law, Jurisdiction and Venue
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- This Agreement shall become valid when executed and accepted by Company at San Diego, California. The laws of California shall apply to any claim or controversy regarding the making, entering into, performance, or interpretation of this Agreement, without giving effect to any conflict-of-law rules of such jurisdiction. If, however, any provision of this Agreement would not be enforceable under the laws of California, Franchisee is located outside of California, and such provision would be enforceable under the laws of the state in which Franchisee is located, then such provision shall be interpreted and construed under the laws of that state.
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- Franchisee shall file any suit against Company or its officers, directors, agents, employees or shareholders, arising out of this Agreement or otherwise, only in the federal or state court in the judicial district where Company's principal offices are located at the time suit is filed. Company shall file any suit against Franchisee, arising out of this Agreement or otherwise, in any federal or state court in the judicial district where Company's principal offices are located at the time suit is filed, or where Franchisee resides, or where the Franchised Restaurant is or was located, or where the claim arose; and Franchisee hereby consents to and waives all questions of personal jurisdiction and venue for the purpose of carrying out this provision.
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- Company and Franchisee irrevocably waive trial by jury and the right to any class action in any action, proceeding, or counterclaim, whether at law or in equity, brought by Company against Franchisee, or by Franchisee against Company and/or its Affiliates or subsidiaries, and their shareholders, officers, directors, employees and agents, whether or not there are other parties in such action, to the extent permitted by law.
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- Any and all claims and actions arising out of, or relating to, this Agreement, the relationship of Company and Franchisee, or Franchisee's operation of the Franchised Restaurant, shall be commenced within two (2) years from the occurrence
of the facts giving rise to such claim or action, or such shorter term as is established by law, or such claim or action shall be barred.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, the franchise agreement becomes valid when executed and accepted by Jack In The Box in San Diego, California. The laws of California govern any claim or controversy regarding the making, performance, or interpretation of the agreement, without regard to conflict-of-law rules. However, if any provision is unenforceable under California law but enforceable under the laws of the state where the franchisee is located outside of California, then the laws of the franchisee's state will govern that specific provision.
The FDD specifies that a franchisee must file any lawsuit against Jack In The Box or its representatives only in the federal or state court within the judicial district where Jack In The Box's principal offices are located at the time the suit is filed. Conversely, Jack In The Box can file suit against a franchisee in any federal or state court in the judicial district where Jack In The Box's principal offices are located, where the franchisee resides, where the franchised restaurant is or was located, or where the claim arose. The franchisee consents to this arrangement and waives any objections to personal jurisdiction and venue for the purpose of carrying out this provision.
Both Jack In The Box and the franchisee waive their rights to a jury trial and to participate in any class action related to the franchise agreement. Any claims or actions arising from the agreement, the relationship between Jack In The Box and the franchisee, or the franchisee's operation of the restaurant must be commenced within two years from the date of the facts giving rise to the claim, or within a shorter period if required by law; otherwise, the claim or action is barred. This means a franchisee must act quickly to address any issues or disputes, or risk losing their legal recourse.