Is the provision in the Alloy franchise agreement requiring application of the laws of the state where the Facility is located always enforceable under California law?

According to Alloy's 2025 Franchise Disclosure Document, the franchise agreement requires that the laws of the state where the Alloy facility is located will be applied. However, for franchises sold in California, this provision may not always be enforceable under California law. This means that while the agreement generally intends for local state laws to govern, California law may override this provision in certain situations.

This is particularly important for prospective Alloy franchisees in California because California has specific franchise laws that are designed to protect franchisees. If the application of another state's laws would conflict with these California protections, then California law may take precedence. This could affect various aspects of the franchise agreement, such as termination rights, non-compete clauses, and dispute resolution processes.

Therefore, potential Alloy franchisees in California should be aware that certain provisions of the franchise agreement might be subject to California law, regardless of what the agreement initially states about applying the laws of the facility's location. It is advisable to consult with a legal professional to fully understand the implications of this and how California law may impact their rights and obligations under the franchise agreement.