In 1 Percent Lists Franchises, LLC v. Sell Smart, LLC, 2026 WL 183512 (E.D. La. Jan. 23, 2026), 1 Percent Lists Franchises, a real estate franchisor brought claims in state court against Sell Smart, a former franchisee, and its owners (collectively, “Sell Smart”), alleging that they breached the franchise agreement and began engaging in competitive business activities. Sell Smart removed the action to federal court, asserting diversity jurisdiction. Subsequently, 1 Percent filed a successful motion to remand on the grounds that Sell Smart waived its statutory right of removal under the jurisdiction and venue provision of the franchise agreement.
The court considered the contract’s language designating jurisdiction and venue in any state or federal court located in St. Tammany or the Orleans Parish, Louisiana. The court held this designation alone cannot be read to unequivocally waive Sell Smart’s right to removal. However, the clause also stated that Sell Smart “waive[s] any objection to the jurisdiction and venue of such courts.” The court held that this waiver, clearly and unequivocally gave 1 Percent the right to choose the venue, a construction consistent with Fifth Circuit case law. Accordingly, Sell Smart waived the right to removal, so the court remanded the case back to state court. The court denied 1 Percent’s request for attorney’s fees related to bringing the motion because the clause at issue required interpretation and 1 Percent failed to demonstrate that Sell Smart lacked an objectively reasonable basis for seeking removal.
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