Can Pump It Up file a claim relating to the Release in the court where the franchisee resides?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You and we agree that, to the extent any disputes cannot be resolved directly between us, you will file any suit against us only in the federal or state court having jurisdiction where our principal offices are located at the time the suit is filed.
As of the date of this Agreement, those courts are the Superior Court of Arizona, Maricopa County and the United States District Court for the District of Arizona in Phoenix, Arizona.
We may file suit in the federal or state court located in the jurisdiction where our principal offices are located at the time suit is filed or in the jurisdiction where you reside or do business, where the Franchised Business is or was located, or where the claim arose.
You consent to the personal jurisdiction of those courts over you and to venue in those courts.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up has the option to file a lawsuit against a franchisee in the federal or state court located in the jurisdiction where the franchisee resides or conducts business. This also applies to where the franchised business is or was located, or where the claim originated. The franchisee consents to the personal jurisdiction of those courts and to venue in those courts.
This means that Pump It Up is not restricted to filing suits only in Arizona, where their principal offices are located. They can choose to pursue legal action against franchisees in the franchisee's home state, which could be more convenient and potentially less costly for Pump It Up. This clause gives Pump It Up some flexibility in determining the most advantageous location for legal proceedings.
However, franchisees in certain states like Washington and New York have additional protections. For Washington franchisees, the General Release does not apply to any claims arising under the Washington Franchise Investment Protection Act. For New York franchisees, the New York Franchises Law governs any claim arising under that law, regardless of the jurisdiction clause. These state-specific addenda modify the standard agreement to comply with local franchise laws, potentially limiting Pump It Up's ability to enforce certain provisions in those states.