For Aerus, what state's laws govern the interpretation of the guarantee?
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 Aerus's 2025 Franchise Disclosure Document, the laws of Texas govern the interpretation of the guarantee. This means that any disputes related to the guarantee will be subject to Texas law, without regard to its conflict of laws principles. For a prospective franchisee, this is important because it establishes the legal framework that will be used to interpret and enforce the guarantee.
Specifically, the FDD states that any dispute arising from the guarantee that cannot be settled by agreement will be resolved according to the "Governing Law and Dispute Resolution" section of the franchise agreement. This clause ensures that there is a clear and predetermined process for resolving disagreements related to the guarantee.
It is important for potential Aerus franchisees to understand which state's laws govern the agreement, as this can impact how disputes are resolved and what legal rights and obligations they have. Franchisees should carefully review the "Governing Law and Dispute Resolution" section of the franchise agreement to fully understand the dispute resolution process.