What is the significance of the Aerus franchise agreement requiring the laws of Texas to govern?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS GUARANTY SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF TEXAS, WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES THEREOF. ANY DISPUTE ARISING OUT OF OR UNDER THIS GUARANTY NOT SETTLED BY AGREEMENT SHALL BE SETTLED IN ACCORDANCE WITH THE SECTION OF THE AGREEMENT HEADED "GOVERNING LAW AND DISPUTE RESOLUTION."
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the Guaranty agreement signed by the franchisee will be governed and interpreted in accordance with Texas laws. This means that any legal disputes arising from the Guaranty will be subject to Texas law, regardless of where the franchisee is located. The franchisor, Aerus Franchising, LLC, is located in Dallas, Texas, which likely influences this choice of law.
This clause is important because Texas law will dictate how the Guaranty is interpreted and enforced. Franchisees should be aware that the laws of Texas, rather than the laws of their home state, will apply to these agreements. This could have implications for how disputes are resolved, what legal precedents are followed, and what rights and obligations the franchisee has under the Guaranty.
It is typical in franchising for the franchise agreement to specify a particular state's laws to govern the agreement. This provides clarity and predictability in case of legal disputes. Franchisees should consult with a legal professional to understand the specific implications of Texas law on their rights and obligations under the Aerus franchise agreement and the Guaranty.