What state's law governs the Beard Papas Franchise Agreement?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| r. | Non-competition covenants after the franchise is terminated or expires | 6, 17.E. | No involvement, ownership, or interest whatsoever for 24 months in any competing business in: your Designated Territory; a 25-mile radius of your Designated Territory; a 10-mile radius of the Designated Territory of any other Shop; and you must comply with confidentiality, non disclosure and non-solicitation covenants. |
|---|---|---|---|
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral |
| changes that we may make to the Manuals or our unilateral | |||
| reduction of the scope of a restrictive covenant that we may | |||
| make in our discretion. | |||
| t. | Integration/merger clauses | 18.M. | Only the terms of the Franchise Agreement and schedules to |
| the Franchise Agreement and the respective signed exhibits | |||
| to the Franchise Agreement are binding, subject to state | |||
| law. Nothing in any agreement is intended to disclaim the | |||
| express representations | |||
| made in the Franchise Disclosure | |||
| Document, its exhibits, | |||
| and amendments. | |||
| u. | Dispute resolution by arbitration or mediation | 18.G. | Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Los Angeles County, California and, if mediation is unsuccessful, then to binding arbitration in Los Angeles County, California. This provision is subject to applicable state law. |
| v. | Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation |
| proceedings must be conducted in, or closest to, state court | |||
| of general jurisdiction that is within or closest to Los | |||
| Angeles County, California | |||
| or, if appropriate, the United | |||
| States District Court nearest to our corporate headquarters | |||
| at the time such action is filed. This provision is subject to | |||
| applicable state law. | |||
| w. | Choice of law | 18.F. | California |
| law will govern. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–51)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the Franchise Agreement is governed by California law. However, this is subject to applicable state law and as otherwise disclosed in Exhibit I to the Disclosure Document. Prospective franchisees should carefully review Exhibit I to understand any exceptions or variations to California law that may apply in their specific state or situation. It is also important to note that this choice of law provision is subject to applicable state law, meaning that certain state laws may override the agreement's selection of California law in certain circumstances. Franchisees should seek legal counsel to determine how the choice of law provision will be interpreted and enforced in their specific jurisdiction.