Under the Benjamin Franklin Plumbing guarantee, which state's laws govern the guarantee?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guarantee shall be governed by and construed in accordance with the laws of the State of Maryland. Each Guarantor hereby submits to the personal jurisdiction of the state and federal courts located in Maryland, consents to venue in those courts, and agrees that Holder may, at Holder's option, enforce its rights under this Guarantee in those courts. Each Guarantor waives, to the fullest extent permitted by applicable law, the right to a trial by jury in any action arising out of or relating to this Guarantee or any Default under this Guarantee.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the laws of the State of Maryland govern the Benjamin Franklin Plumbing guarantee. The document specifies that the guarantee will be construed in accordance with Maryland law.
This means that any legal disputes arising from the guarantee will be subject to Maryland's legal principles and interpretations. Additionally, each guarantor submits to the personal jurisdiction of the state and federal courts located in Maryland and consents to venue in those courts, giving those courts authority over related legal proceedings.
This clause is important for prospective Benjamin Franklin Plumbing franchisees and guarantors to understand, as it dictates where and how any disputes related to the guarantee will be resolved. Franchisees should be aware of Maryland law and how it might affect their rights and obligations under the guarantee. They should also consider the potential costs and inconveniences associated with litigating in Maryland if they are not located there.