Driven Brands Holdings, Inc. (DRVN) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Driven Brands Holdings, Inc. faces potential business risk due to its exclusive forum provision, which mandates that certain legal disputes be resolved in Delaware or federal district courts. While this provision aims to ensure consistency in legal proceedings, it may limit stockholders’ ability to choose favorable forums, potentially discouraging lawsuits. The enforceability of such provisions can be uncertain, and legal challenges could lead to increased litigation costs for the company. If deemed unenforceable, Driven Brands might face financial and operational impacts from resolving actions in alternate jurisdictions.
The average DRVN stock price target is $19.11, implying 17.74% upside potential.
To learn more about Driven Brands Holdings, Inc.’s risk factors, click here.