Where are the state and federal courts located that have exclusive jurisdiction for carrying out the jurisdiction provision of the Learningrx agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.), the Federal Arbitration Act, or other federal law, this Agreement shall be interpreted under the laws of the state of Colorado and any dispute between the parties shall be governed by and determined in accordance with the substantive laws of the state of Colorado, which laws shall prevail in the event of any conflict of law. The Area Developer and the Franchisor have negotiated regarding a forum in which to resolve any disputes which may arise between them and have agreed to select a forum in order to promote stability in their relationship. Therefore, if a claim is asserted in any legal proceeding involving the Area Developer, its officers, directors, managers or partners (collectively, "Area Developer Affiliates") and the Franchisor, its officers, directors or sales employees (collectively, "Franchisor Affiliates") the parties agree that the exclusive venue for disputes between them shall be in the state and federal courts of Denver, Colorado or the Denver, Colorado office of the AAA and each party waives any objection they may have to the personal jurisdiction of or venue in the state and federal courts of Denver, Colorado or the Denver, Colorado office of the AAA. The Franchisor, the Franchisor Affiliates, the Area Developer and the Area Developer Affiliates each waive their rights to a trial by jury.
10.03. Injunctive Relief. Notwithstanding the above provision for arbitration, the Franchisor and the Area Developer will each have the right in a proper case to obtain injunctive relief and any damages incidental thereto from a court of competent jurisdiction. The Area Developer agrees that the Franchisor may obtain such injunctive relief, without posting a bond or
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the exclusive venue for resolving disputes is in the state and federal courts of Denver, Colorado. This applies to any legal proceeding involving the Area Developer, its officers, directors, managers, or partners (collectively, "Area Developer Affiliates") and Learningrx, its officers, directors, or sales employees (collectively, "Franchisor Affiliates").
This means that if a Learningrx franchisee (or its affiliates) has a dispute with Learningrx (or its affiliates), the lawsuit must be filed in either the state courts or the federal courts located in Denver, Colorado. Both parties also agree to waive any objections to the personal jurisdiction or venue in those courts. Additionally, the parties can choose to have the dispute resolved through the Denver, Colorado office of the American Arbitration Association (AAA).
It is important to note that Learningrx and the franchisee also waive their rights to a trial by jury. However, Learningrx retains the right to seek injunctive relief and associated damages from a court with competent jurisdiction, regardless of the arbitration provision. This allows Learningrx to pursue immediate legal action to stop a franchisee from violating the agreement, without being required to post a bond.