What state's laws govern the Angry Chickz Continuing Guaranty?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Governing Law.
This Continuing Guaranty shall be governed by and construed in accordance with the laws of the State of California, without regarding to conflict of laws principles.
Wherever possible each provision of this Continuing Guaranty shall be interpreted as to be effective and valid under applicable law, but if any provision of this Continuing Guaranty shall be prohibited by or invalid under such law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Continuing Guaranty.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Continuing Guaranty is governed by the laws of California. Specifically, the document states that the laws of California will be used to interpret and construe the Continuing Guaranty agreement. However, this is without regard to conflict of laws principles.
This means that if there are any legal disputes regarding the Continuing Guaranty, California law will be applied. This is fairly standard in franchising, as franchisors typically choose a specific state's laws to govern their agreements to ensure consistency and predictability in legal matters.
It is also important to note that if any provision of the Continuing Guaranty is found to be ineffective or invalid under applicable law, that provision will be ineffective only to the extent of the prohibition or invalidity, without invalidating the remainder of the provision or the remaining provisions of the Continuing Guaranty.