Under the Benihana Guaranty, what state's laws govern the Guaranty and any related claims?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Choice of Law; Jurisdiction and Venue.
This Guaranty, and any claims related thereto, shall be governed by and construed in accordance with the laws of the State of Florida.
GUARANTOR hereby irrevocably submits to the jurisdiction of the United States District Court for the Southern District of Florida ("Southern District of Florida"), which shall be the venue and exclusive proper
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the Guaranty and any related claims will be governed by and construed in accordance with the laws of the State of Florida. This means that if there are any disputes related to the Guaranty, Florida law will be used to interpret the agreement and resolve the issues.
Furthermore, the Guarantor submits to the jurisdiction of the United States District Court for the Southern District of Florida, which will be the venue and exclusive proper location for any legal proceedings. This means that any lawsuit related to the Guaranty must be filed in the U.S. District Court for the Southern District of Florida.
This clause is important for prospective Benihana franchisees and their guarantors because it establishes the legal framework for resolving disputes related to the Guaranty. Franchisees and guarantors should be aware that they may be required to travel to Florida for any legal proceedings and that Florida law will apply.