What section of the 360 Painting Franchise Agreement addresses choice of law?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
gnature Page to Amendment to 360 Painting, LLC Franchise Agreement for the State of Illinois]**
ADDENDUM TO 360 PAINTING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR INDIANA FRANCHISEES
The Indiana Deceptive Franchise Practices Law (Indiana Code 23-2-2.7) contains certain laws governing the relationship between a Franchisor and Franchisee. Certain of these laws conflict with provisions contained in our customary Franchise Agreement and related documents. Set forth below is an overview of certain disclosures contained in the attached Franchise Disclosure Document which are amended by virtue of the Indiana law.
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- The Franchise Agreement and related documents by and between us and you, as an Indiana franchisee, will be governed by Indiana law and not the law of the Commonwealth of Virginia.
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- You, as an Indiana franchisee, have the right to litigate in Indiana and are not restricted to the requirements in the Franchise Agreement to sue only in Albemarle Virginia.
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- The covenants of non-competition with respect to you, as an Indiana franchisee, will be limited to an area equal to the protected area granted to you and other Franchisees.
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- Indiana law prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law.
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 FDD, the governing law or choice of law within the 360 Painting Franchise Agreement is addressed and modified by state-specific addenda, particularly for Indiana and Illinois franchisees. For Indiana, the addendum explicitly states that the Franchise Agreement will be governed by Indiana law, overriding the standard clause that designates the law of the Commonwealth of Virginia. Similarly, for Illinois, the Illinois Franchise Disclosure Act mandates that Illinois law governs the agreements between the parties. These modifications ensure compliance with state franchise laws, which can vary significantly.
For a prospective 360 Painting franchisee, this means the governing law of their franchise agreement depends on the state in which they operate. In states like Indiana and Illinois, the standard choice-of-law clause is superseded by the state's laws, offering franchisees the protections and rights afforded under their local statutes. This is a crucial consideration, as state laws can influence various aspects of the franchise relationship, including dispute resolution, termination rights, and non-compete agreements.
It is important for potential 360 Painting franchisees to carefully review any state-specific addenda to the Franchise Agreement to understand how local laws modify the standard terms. This ensures that franchisees are aware of their rights and obligations under the laws of their state, rather than relying solely on the franchisor's standard agreement. Consulting with a franchise attorney is advisable to fully comprehend the implications of these state-specific modifications.