Which state's laws govern the Angry Chickz franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.6 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to any conflict of laws principles, except that (a) the provisions in Section 12.1 and to the extent applicable, Section 12.5, shall be governed by the laws of the state in which the Franchised Business is located, and (b) state law relating to (i) the offer and sale of franchises (ii) franchise relationships, or (iii) business opportunities, will not apply unless the applicable jurisdictional requirements are met independently without reference to this paragraph.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchise agreement is governed by the laws of California. Specifically, the agreement is construed in accordance with California law, without regard to its conflict of laws principles. This means that if there are disputes regarding the franchise agreement, California law will be applied.
However, there are a couple of exceptions to this rule. The laws of the state in which the franchised business is located will govern provisions related to non-competition agreements and venue. Additionally, state laws concerning franchise sales, franchise relationships, or business opportunities will not apply unless the jurisdictional requirements are met independently, without relying on the franchise agreement's general governing law provision.
This is a fairly standard clause in franchise agreements, as the franchisor typically wants the agreement to be interpreted under the laws of the state where they are headquartered. However, franchisees should be aware of the exceptions, particularly the one regarding the location of the franchised business, as this could impact certain aspects of the agreement depending on their location.