Franchisor Enforces Forum Selection Clause against Area Representative in California Federal District Court

Successfully enforced a forum selection clause for HDYR, LLC (How Do You Roll?) against an area representative in the U.S. District Court for the Eastern District of California. HDYR removed the case to federal court and then successfully enforced a forum selection clause whereby the U.S. District Court for the Eastern District of California transferred the case to federal court in the Western District of Texas. This occurred despite the existence of the California Franchise Relations Act, which prohibits a franchise agreement from restricting venue to a forum outside of California. The ruling, finding that an area representative agreement was not covered by this language, was cited as #4 of the Top Ten Legal cases of 2015 in Franchise Times magazine. It was also a victory for franchisors in California, which is often seen as a franchisee-friendly jurisdiction.

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