According to the Monicals Pizza Development Agreement, where must litigation be pursued?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Development Agreement | Summary |
|---|---|---|
| v. Choice of forum | Section 13.2 | Subject to state law, any litigation must be pursued in courts located in Champaign County, Illinois. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, any litigation pertaining to the Development Agreement must be pursued in courts located in Champaign County, Illinois. This is subject to state law. This stipulation is outlined in Section 13.2 of the Development Agreement, as referenced in Item 17.
This means that if a Monicals Pizza developer has a legal dispute with the company related to the Development Agreement (excluding disputes about trademarks and trade secrets, which are handled differently), the lawsuit must be filed in Champaign County, Illinois, regardless of where the developer's business is located. This could create additional expenses for travel and legal representation if the developer is not located near Champaign County.
Choice of forum clauses are common in franchise agreements, as they provide predictability and reduce costs for the franchisor by centralizing litigation in a single location. Prospective Monicals Pizza developers should consider this when evaluating the Development Agreement, as it could impact the cost and convenience of resolving disputes.