Which state's laws govern the Beehive Homes Guaranty, disregarding conflict of laws principles?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Governing Law. Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. ¶ 1050 et seq.), as amended, this Guaranty and any and all disputes relating to this Guaranty will be governed by and construed in accordance with the substantive laws of the State of Utah without regard to laws of conflict or choice of laws of the State of Utah or of any other jurisdiction that would result in the application of any laws other than those of the State of Utah.
- b. Jurisdiction. The parties hereby irrevocably accept in respect of their persons and their property, generally and unconditionally, the jurisdiction of the courts of the State of Utah, in the County of Salt Lake, or the United States District Court for the District of Utah, consent to venue in Salt Lake County, Utah, and further consent that any process or notice of motion or other application to any court or a judge thereof, may be served outside the State of Utah by certified mail or by personal service, provided a reasonable time for appearance is allowed.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Guaranty is governed by the laws of Utah, without regard to conflict of law principles. This means that any disputes related to the Guaranty will be interpreted and enforced based on Utah law, irrespective of whether the parties involved or the circumstances of the dispute have connections to other states.
Furthermore, the FDD specifies that the courts of the State of Utah, in the County of Salt Lake, or the United States District Court for the District of Utah have jurisdiction over disputes. Beehive Homes franchisees consent to venue in Salt Lake County, Utah, and agree that any process or notice of motion may be served outside the State of Utah by certified mail or personal service, provided a reasonable time for appearance is allowed.
This is a standard clause in franchise agreements, as franchisors typically prefer to have disputes resolved in their home state. For a prospective Beehive Homes franchisee, this means that if a dispute arises related to the Guaranty, they may have to travel to Utah for legal proceedings, which could increase costs. It is important for franchisees to understand and consider this when evaluating the franchise opportunity.