That all depends on your state's law and, if consistent with state law, the franchise agreement. Many franchise agreements provide that all disputes must be settled out of court in arbitration, precluding any lawsuits, unless your state's law does not permit that type of provision.

If lawsuits are possible, be aware that most franchisers want to have any lawsuits heard in their home state, and structure their franchise agreements accordingly. However, several states have laws which require that franchisers be amenable to suit in the state in which the franchise is located.