What courts does Pump It Up consent to personal jurisdiction and venue over franchisees?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned agrees that all actions arising under this Guaranty or the Agreement, or otherwise as a result of the relationship between us and the undersigned, must be commenced in a state or federal court of competent jurisdiction in the state or judicial district in which we have our principal place of business at the time the action is commenced. Such location for our principal place of business as of the date of execution of this Guaranty is Phoenix, Arizona, and the only courts through which any action may be brought are the Superior Court of the State of Arizona, Maricopa County or the United States District Court for the District of Arizona, located in Phoenix. Each of the undersigned irrevocably submits to the jurisdiction of these courts and waives any objection they might have to either the jurisdiction of or venue in those courts. Nonetheless, each of the undersigned agrees that we may also enforce this Guaranty and judgment orders in the courts of the state or states in which they are domiciled
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, franchisees and guarantors agree that any legal actions arising from the Guaranty or the Franchise Agreement must be initiated in either the Superior Court of the State of Arizona, Maricopa County, or the United States District Court for the District of Arizona, located in Phoenix. This agreement applies to all actions related to the relationship between Pump It Up and the franchisee or guarantor.
This means that a franchisee may be required to litigate disputes with Pump It Up in Arizona, regardless of where the franchisee's business is located. This could increase the franchisee's legal costs due to travel and the need to hire local counsel in Arizona. The franchisee also consents to the jurisdiction of these courts, meaning they cannot argue that the Arizona courts lack the authority to hear the case.
However, Pump It Up retains the right to enforce the Guaranty and judgment orders in the courts of the state where the franchisee or guarantor is domiciled. This allows Pump It Up to pursue legal action against the franchisee or guarantor in their home state to enforce the terms of the Guaranty or any judgments obtained in Arizona. This dual approach provides Pump It Up with flexibility in pursuing legal remedies while potentially creating additional burdens for the franchisee.