Are there any exceptions to the choice of law provision in the Apricot Lane Franchise Agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |
|---|---|---|---|
| w. | Choice of law | Section 22.B | Except for Federal Arbitration Act and other federal law, the laws of the state in which in which the Apricot Lane franchised business is operating under the Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the choice of law provision in Section 22.B of the Franchise Agreement has specific exceptions. Generally, the laws of the state where the Apricot Lane franchise is operating govern the Franchise Agreement.
However, this is not absolute. The Federal Arbitration Act and other federal laws take precedence over state law. This means that if a dispute arises that falls under the scope of federal law, those federal laws will be applied instead of the state law where the franchise is located.
For a prospective Apricot Lane franchisee, this means understanding both federal and state laws relevant to franchising. While day-to-day operations are generally governed by the state in which the business operates, certain legal matters, particularly those involving arbitration or other federal issues, will be subject to federal law. It is important to consult with a legal professional to fully understand the implications of this provision.