What state's laws does the Beard Papas Franchise Agreement require to be applied?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota franchisees, North Dakota law shall apply."
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the franchise agreement is subject to specific state laws depending on the franchisee's location. For franchisees in North Dakota, the Franchise Agreement is amended to state that "for North Dakota franchisees, North Dakota law shall apply." This means that if a Beard Papas shop is located in North Dakota, or if the franchisee is a resident of North Dakota, the provisions of the Franchise Agreement will be interpreted and enforced in accordance with North Dakota law.
Similarly, for franchisees in Illinois, the Illinois Franchise Disclosure Act dictates that Illinois law governs the agreements between the parties. The FDD states that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside Illinois is permitted.
For Rhode Island, the Rhode Island Franchise Investment Act specifies that any provision restricting jurisdiction or requiring the application of another state's laws is void with respect to claims enforceable under the Act. These amendments ensure that franchisees' rights are protected under their respective state laws, regardless of what the standard Franchise Agreement might otherwise stipulate. These state-specific amendments reflect an effort to comply with various state franchise laws, which often aim to protect franchisees from unfavorable terms or conditions.