Under what law is the Bananas Smoothies Frozen Yogurt Agreement construed?

According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the franchise agreement requires application of the laws of New Jersey. However, for prospective franchisees in California, this provision may not be enforceable under California law. The California addendum explicitly states that any provision in the franchise agreement requiring the application of New Jersey laws may not be enforceable in California. This is due to California's public policy and franchise laws designed to protect franchisees.

This means that while the standard Bananas Smoothies Frozen Yogurt franchise agreement likely stipulates that New Jersey law governs the agreement, California franchisees may have the right to have California law apply to certain disputes or interpretations of the agreement. This could be significant in cases of termination, transfer, non-renewal, or disputes over the covenant not to compete, as California law may offer different protections or regulations than New Jersey law.

Prospective franchisees should be aware of this potential conflict and consult with legal counsel to understand their rights and obligations under both the franchise agreement and applicable state laws. It is particularly important for California franchisees to understand which aspects of the agreement are subject to California law and how this might affect their relationship with Bananas Smoothies Frozen Yogurt. This ensures that franchisees are fully informed about their legal standing and can make informed decisions regarding their franchise investment.