Under what circumstances can Learningrx or the Franchisee bring an action in any court in any state?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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, both Learningrx and the franchisee have the option to initiate legal action in any court within any state that possesses jurisdiction, specifically when the action involves a request for injunctive relief or other extraordinary remedies.
Typically, franchise agreements specify a particular jurisdiction and venue for resolving disputes, often favoring the franchisor's home state. However, this clause provides an exception, allowing either party to seek immediate and geographically flexible legal recourse when urgent intervention is needed, such as preventing irreparable harm or enforcing critical obligations.
For a prospective Learningrx franchisee, this clause offers a degree of protection and flexibility. It means that if Learningrx takes actions that require immediate legal intervention, the franchisee isn't limited to a specific distant court and can seek relief locally. Conversely, it also allows Learningrx to act swiftly to protect its brand and system standards, regardless of the franchisee's location, should the need arise.