To which jurisdiction and venue do the parties of the Spray Net franchise agreement irrevocably submit?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding any provision of this Agreement to the contrary, this Agreement is governed by Illinois law. The parties irrevocably submit to the jurisdiction and venue of the federal and state courts in Illinois, except for matters which the Agreement provides will be resolved by arbitration.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by Illinois law. However, this is subject to certain state-specific addenda that may modify this provision. Specifically, the parties involved in the Spray Net franchise agreement irrevocably submit to the jurisdiction and venue of federal and state courts in Illinois. This applies except for matters that the agreement specifies will be resolved through arbitration.
It is important to note that this jurisdiction clause may be superseded or limited by state-specific franchise laws. For example, the Illinois Addendum specifies that Section 4 of the Illinois Franchise Disclosure Act voids any provision designating jurisdiction or venue outside of Illinois, although it permits arbitration outside of Illinois. Similarly, the Minnesota Addendum prohibits Spray Net from requiring litigation to be conducted outside of Minnesota.
Prospective Spray Net franchisees should carefully review the addenda applicable to their specific state to understand how these provisions modify the general governing law and jurisdiction clauses in the franchise agreement. They should also consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.