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The Leasing Hotline

By Craig R. Tractenberg and Gregg Rubenstein

Forum Selection Clause An Important Provision in Franchise Agreements

In a case reminiscent of a man-bites-dog story, a franchisor's action to enforce its post-term restrictive covenant was recently dismissed for being in violation of its own forum selection clause. TGA Premier Junior Golf Franchise v. BP Bevins Golf, C.A. No. 12-4321 (D.N.J. Oct. 12, 2012), concerns a franchisor's unremarkable decision to waive its contractual right to sue in California and instead bring suit in New Jersey against its former New Jersey franchisee. By all accounts, the franchisee always operated in New Jersey, was allegedly competing in New Jersey and had no relationship whatsoever with California other than it being where the franchisor was located.

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