For Kidokinetics franchises in Indiana, where is litigation regarding the Franchise Agreement held?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The "Summary" column in Item 17.v. of the FDD is deleted and the following is inserted in its place:
Litigation regarding Franchise Agreement in Indiana; other litigation in Franchisor's Choice of Law State. This language has been included in this Franchise Disclosure Document as a condition to registration. The Franchisor and the Franchisee do not agree with the above language and believe that each of the provisions of the Franchise Agreement, including all venue provisions, is fully enforceable. The Franchisor and the Franchisee intend to fully enforce all of the provisions of the Franchise Agreement and all other documents signed by them, including but not limited to, all venue, choice-of-law, arbitration provisions and other dispute avoidance and resolution provisions and to rely on federal pre-emption under the Federal Arbitration Act.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, for franchises operating in Indiana, litigation regarding the Franchise Agreement will be held in Indiana. However, other litigation will be held in the Franchisor's Choice of Law State.
This condition is included in the FDD as a condition to registration. Kidokinetics and the franchisee do not agree with the above language and believe that each of the provisions of the Franchise Agreement, including all venue provisions, is fully enforceable. Kidokinetics and the franchisee intend to fully enforce all of the provisions of the Franchise Agreement and all other documents signed by them, including but not limited to, all venue, choice-of-law, arbitration provisions and other dispute avoidance and resolution provisions and to rely on federal pre-emption under the Federal Arbitration Act.
This means that while the FDD states that Franchise Agreement litigation in Indiana will be held in Indiana, Kidokinetics intends to enforce the venue provisions in the Franchise Agreement, which may specify a different location or method of dispute resolution. Prospective franchisees should carefully review the Franchise Agreement and consult with legal counsel to understand the implications of these conflicting statements and the potential for disputes to be resolved outside of Indiana.