Is the choice of forum for Mr. Sandless franchise disputes subject to state law?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| v. Choice of forum | 24.6 | | Subject to state law, for any dispute not subject to or not resolved by mediation, the parties agree to litigate only in a court of general jurisdiction in Delaware County, Pennsylvania, or the United States District Court for the Eastern District of Pennsylvania. |
The following amends Item 17 and is required to be included within the Disclosure Document and shall be deemed to supersede the language in the Disclosure Document itself:
Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that:
"A provision in a franchise agreement restricting jurisdiction or venue to a forum outside of this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
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- Under Indiana Code 23-2-2.7-1 (10), jurisdiction and venue must be in Indiana if the franchisee so requests. This amends Article 24 of the Franchise Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the choice of forum for dispute resolution is subject to state law. Specifically, Item 17 details that for any dispute not subject to or not resolved by mediation, the parties agree to litigate only in a court of general jurisdiction in Delaware County, Pennsylvania, or the United States District Court for the Eastern District of Pennsylvania, but this is subject to state law.
This means that while Mr. Sandless's standard franchise agreement specifies Pennsylvania as the location for resolving disputes, state laws may override this provision. For example, the Rhode Island Franchise Investment Act states that any provision restricting jurisdiction or venue to a forum outside of Rhode Island is void with respect to a claim otherwise enforceable under that Act. Similarly, Indiana law stipulates that jurisdiction and venue must be in Indiana if the franchisee requests it.
For a prospective Mr. Sandless franchisee, this is an important consideration. The franchisee needs to be aware of the specific franchise laws in their state and how those laws might affect the enforceability of the forum selection clause in the franchise agreement. It is essential to consult with a legal professional to understand the implications of these provisions and how they apply to their specific situation. This ensures that franchisees understand their rights and obligations regarding dispute resolution.