In the All County Franchise Agreement, what law governs if there is a dispute?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Governing Law and Jurisdiction. This Agreement will be construed and enforced in accordance with the law of the State of Florida.
ADDENDUM TO ALL COUNTY® FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
Illinois law governs the Agreements.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Franchise Agreement will be governed by Florida law. Specifically, the document states that the agreement will be construed and enforced in accordance with the laws of the State of Florida. This means that if there is a dispute regarding the franchise agreement, Florida law will be used to interpret the agreement and resolve the dispute.
However, there is an addendum for Illinois that states Illinois law governs the agreements and that any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. The Illinois Franchise Disclosure Act states that a franchise agreement may provide for arbitration to take place outside of Illinois.
Prospective franchisees should be aware that the governing law can significantly impact their rights and obligations under the franchise agreement. It is advisable to seek legal counsel to understand the implications of the governing law and jurisdiction provisions, especially if the franchisee is not located in Florida or Illinois.