When a franchisee located in New Jersey alleges that his franchisor located outside the state has violated the provisions of the New Jersey Franchise Practices Act (NJFPA) (N.J.S.A. §56:10-1, et seq.), a venue and jurisdictional conflict immediately develops. This is because the NJFPA provides for venue and jurisdiction in the New Jersey Superior Court, but the franchise agreement typically provides for venue and jurisdiction in the franchisor’s home state.
In the recent case of The Business Store v. Mail Boxes Etc. (D.N.J. 11-3662 Feb. 16, 2012), the New Jersey federal court held that a forum selection clause in a franchise agreement for the state of California would not be given effect based upon the provisions of the NJFPA.
