As a Franchise Attorney I can say the answer depends on a number of factors. Normally the proper court is federal court for out-of-state defendants. Federal court does not have small claims. The parties, by contract, may agree otherwise and stipulate to the jurisdiction and courts of a particular state. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
