factual

For claims not subject to arbitration, where is the proper venue and jurisdiction for any claims related to the Ledgers Franchise Agreement?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

9.7. Jurisdiction and Venue

Except as to matters which are subject to arbitration, venue and jurisdiction for any Claims will be proper solely in the state and federal court nearest to our headquarters, presently located in Virginia Beach, Virginia.

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers's 2025 Franchise Disclosure Document, the venue and jurisdiction for any claims not subject to arbitration will be proper solely in the state and federal court nearest to Ledgers's headquarters, which is presently located in Virginia Beach, Virginia. This means that if a franchisee has a legal dispute with Ledgers that is not subject to arbitration, the franchisee will likely need to pursue the claim in a court located in or near Virginia Beach, Virginia.

This requirement could create additional costs and logistical challenges for franchisees who do not reside near Virginia Beach. Franchisees may need to hire attorneys who are licensed to practice in Virginia and may need to travel to Virginia for court hearings and other legal proceedings. These added expenses should be considered when evaluating the franchise opportunity.

It is important to note that the FDD also includes state-specific addenda that may modify this provision. For example, the Illinois addendum states that any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. The North Dakota addendum states that any claim against Ledgers must be brought solely in arbitration before the American Arbitration Association. Prospective franchisees should carefully review the state addendum for their state to determine whether this provision has been modified.

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.