Does the Southern Steer franchise agreement require disputes regarding the franchisee's obligation to indemnify the franchisor to be subject to mediation or arbitration?

According to the 2025 Southern Steer Franchise Disclosure Document, disputes regarding the franchisee's obligation to indemnify Southern Steer are specifically excluded from mediation and arbitration. This means that if a dispute arises over the franchisee's duty to protect Southern Steer from claims or damages, the matter will not be subject to these alternative dispute resolution methods.

Instead, the franchise agreement dictates that these types of disputes must be resolved in federal or state courts located in Clearwater, Florida. The agreement also stipulates that both parties waive any objections to personal jurisdiction or venue in those courts. However, if Southern Steer's principal place of business is not located in the Clearwater, Florida metropolitan area, the nearest city to Southern Steer's principal place of business with a state and federal court will be substituted for Clearwater, Florida, at Southern Steer's sole discretion.

This clause has significant implications for prospective franchisees. It means that if a dispute arises regarding indemnification, the franchisee may be required to litigate the matter in Florida, regardless of where their franchise is located. This could result in increased legal costs and logistical challenges for franchisees who are not located near Clearwater or the alternative location determined by Southern Steer. Franchisees should carefully consider this venue provision and its potential impact on their ability to effectively resolve disputes with Southern Steer.