What governing law applies to the Bambu Nondisclosure and Noncompetition Agreement in Indiana, excluding matters governed by the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Law?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
INDIANA RIDER TO THE NONDISCLOSURE AND NONCOMPETITION AGREEMENT
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- Section 4 is reduced in scope to apply only to a 10 mile radius of the location of the Franchised Location.
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- Section 10 is deleted and replaced with the following language:
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- Governing Law. Except to the extent governed by the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Law, this instrument shall be governed by and construed under the laws of the State of Colorado, U.S.A.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Nondisclosure and Noncompetition Agreement in Indiana, excluding aspects governed by the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Law, is subject to the laws of the State of Colorado. This is detailed in the Indiana Rider to the Nondisclosure and Noncompetition Agreement.
This means that if there are disputes regarding the Nondisclosure and Noncompetition Agreement in Indiana, the interpretation and enforcement of the agreement will generally follow Colorado law, except when Indiana's franchise laws specifically apply. This could influence how certain provisions of the agreement are viewed and enforced in legal proceedings.
For a prospective Bambu franchisee in Indiana, it's crucial to understand the implications of this choice of law. While Indiana franchise laws provide certain protections, other aspects of the agreement will be governed by Colorado law, which may have different standards or interpretations. Franchisees should seek legal counsel to fully understand their rights and obligations under both Colorado and Indiana law.