Where are the choice of forum provisions located in The Standardx agreements?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement |
|---|---|
| u. Dispute resolution by arbitration or mediation | 14.1 of Franchise Agreement; 11 of Central Services Agreement |
| v. Choice of forum | 14.3 of Franchise Agreement; 11 of Central Services Agreement |
| Provision | Section in franchise or other agreement |
| w. Choice of law | 14.2 of Franchise Agreement; 8C of Confidentiality Agreement; 11 of Central Services Agreement Provision |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the choice of forum provisions are detailed in specific sections of the Franchise Agreement and the Central Services Agreement. Item 17 outlines that the choice of forum, which dictates where legal disputes must be litigated, is found in Section 14.3 of the Franchise Agreement and Section 11 of the Central Services Agreement. This means that any litigation, subject to arbitration obligations and state law, generally must occur in Illinois, which is The Standardx's home state.
For a prospective franchisee, this is an important consideration because it determines where they may have to travel and engage legal counsel should a dispute arise with The Standardx. Litigating in Illinois could add significant costs for franchisees located elsewhere due to travel, local counsel fees, and other logistical expenses. Franchisees should carefully review these sections to understand their rights and obligations regarding dispute resolution.
It is also important to note that the choice of forum is subject to both arbitration obligations and state law. This means that some disputes may be required to go through arbitration, as detailed in Section 14.1 of the Franchise Agreement and Section 11 of the Central Services Agreement, before litigation is an option. Additionally, state laws may impact the enforceability of the choice of forum provision, potentially allowing a franchisee to litigate in their own state under certain circumstances. Franchisees should seek legal counsel to fully understand the implications of these provisions in their specific situation.