Which state's courts have jurisdiction over legal proceedings arising out of the Mrcool Franchise Agreement?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
or legal proceeding must be brought in a court of competent jurisdiction located within Kentucky and within Graves County or the county closest to Graves County. Franchisor and Franchisee do hereby irrevocably consent to and waive any objection to such jurisdiction or venue. Without limitation to the foregoing and notwithstanding same, Franchisor and Franchisee agree that Franchisor, at Franchisor's election, may bring any legal action or proceeding seeking a temporary restraining order, preliminary injunction, or any action seeking Franchisor's enforcement of an arbitration award or any judicial decision in the federal or state court located in the county and state where either the Franchised Business was located or where Franchisee resides.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, legal proceedings must be brought in Kentucky, specifically in a court within Graves County or the county closest to it. The franchisee consents to this jurisdiction and waives any objections to it. However, Mrcool retains the option to initiate legal actions for temporary restraining orders, preliminary injunctions, or enforcement of arbitration awards in the federal or state court located in the county and state where the franchised business is located or where the franchisee resides.
Notably, this general rule may be superseded by state-specific amendments included in the FDD. For franchisees in Illinois, the FDD states that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside Illinois is permitted. Similarly, for franchisees in North Dakota, covenants requiring consent to the jurisdiction of courts outside of North Dakota may not be enforceable.
For prospective Mrcool franchisees, this means that while the standard agreement specifies Kentucky courts, the actual jurisdiction could vary depending on the franchisee's location and relevant state laws. Franchisees should carefully review any state-specific amendments to understand their rights and obligations regarding legal proceedings. It is advisable to seek legal counsel to fully understand the implications of these clauses and how they apply to their specific circumstances.