Does the choice of jurisdiction in the Stretch Zone agreement preclude bringing an action in another jurisdiction to enforce a judgment obtained in Florida?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Jurisdiction. The parties specifically agree that this Agreement requires systematic and continuous contact with the State of Florida or where our principal place of business is located. These contacts include the payment of fees in State of Florida, the supplying of financial and other information into the State of Florida, training and orientation and the performance of other obligations under this Agreement in the State of Florida. This exclusive choice of jurisdiction does not preclude the bringing of any action by the parties for the enforcement in any other appropriate jurisdiction of any judgment obtained in the State of Florida.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the franchise agreement's venue and jurisdiction clause does not prevent a party from enforcing a Florida judgment in another jurisdiction. Specifically, while the agreement stipulates that initial dispute proceedings or legal actions will occur in the county where Stretch Zone's principal business is located (Broward County, Florida), it explicitly allows for the enforcement of judgments obtained in Florida in other appropriate jurisdictions.
This means that if Stretch Zone or the franchisee obtains a judgment in Florida, they are not limited to enforcing that judgment only within Florida. They can take legal action in other states or countries to collect the money or enforce the ruling. This is a common provision in franchise agreements, as it allows the franchisor to pursue legal remedies across state lines if necessary.
For a prospective Stretch Zone franchisee, this clause offers some protection. If they win a judgment against Stretch Zone in Florida, Stretch Zone cannot argue that the judgment is only enforceable in Florida. Stretch Zone would be required to comply with enforcement actions in other jurisdictions where they have assets or do business.