factual

To which state courts does the Learningrx Franchisee Affiliate irrevocably submit himself to jurisdiction?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO. FRANCHISEE AFFILIATE HEREBY IRREVOCABLY SUBMITS HIMSELF TO THE JURISDICTION OF THE STATE COURTS OF EL PASO COUNTY, COLORADO OR THE U. S. DISTRICT COURT FOR THE DISTRICT OF COLORADO. FRANCHISEE AFFILIATE HEREBY WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION OR VENUE FOR THE PURPOSE OF CARRYING OUT THIS PROVISION. FRANCHISEE AFFILIATE HEREBY AGREES THAT SERVICE OF PROCESS MAY BE MADE UPON HIM IN ANY PROCEEDING RELATING TO OR ARISING UNDER THIS AGREEMENT OR THE RELATIONSHIP CREATED BY THIS AGREEMENT BY ANY MEANS ALLOWED BY COLORADO OR FEDERAL LAW. FRANCHISEE AFFILIATE FURTHER AGREES THAT VENUE FOR ANY PROCEEDING RELATING TO OR ARISING OUT OF THIS AGREEMENT SHALL BE IN EITHER EL PASO OR DENVER COUNTY, COLORADO; PROVIDED, HOWEVER, WITH RESPECT TO ANY ACTION THAT INCLUDES INJUNCTIVE RELIEF OR OTHER EXTRAORDINARY RELIEF, FRANCHISOR OR FRANCHISEE MAY BRING SUCH ACTION IN ANY COURT IN ANY STATE THAT HAS JURISDICTION.

Source: Item 23 — RECEIPT (FDD pages 54–209)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, the Franchisee Affiliate irrevocably submits to the jurisdiction of the state courts of El Paso County, Colorado. Additionally, the Franchisee Affiliate submits to the jurisdiction of the U. S. District Court for the District of Colorado. The Franchisee Affiliate waives all questions of personal jurisdiction or venue to carry out this provision.

This means that any legal disputes arising from the franchise agreement, unless involving injunctive or other extraordinary relief, will be litigated in either the state courts of El Paso County, Colorado, or the U.S. District Court for the District of Colorado, regardless of where the Learningrx franchisee's business is located. This is a standard clause in franchise agreements, as it provides the franchisor with a consistent legal environment. However, it could present a financial burden for a franchisee located outside of Colorado, who would need to travel to Colorado for any court proceedings.

It is important to note the exception: for actions involving injunctive relief or other extraordinary relief, Learningrx or the franchisee may bring such action in any court in any state that has jurisdiction. This exception allows either party to seek immediate and urgent legal remedies in a location that is most convenient or appropriate for the specific situation. Franchisees should be aware of this clause and understand the potential implications of litigating disputes in Colorado.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.