Which state's laws govern adversarial proceedings between Better Blend Franchising (BBF) and the franchisee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding any provision of the Agreement to the contrary, the New York Franchise Law shall govern any claim arising under that law.
This Guaranty shall be governed by and construed in accordance with the laws of the state of Ohio (without giving effect to its principles of conflicts of law).
The parties agree that any Ohio law for the protection of franchisees or business opportunity purchasers (including the Ohio Business Opportunity Purchasers Protection Act, Ohio Rev.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the New York Rider to the Franchise Agreement states that the New York Franchise Law governs any claim arising under that law, notwithstanding any provision of the agreement to the contrary. This applies specifically to franchisees operating in New York.
For franchisees operating outside of New York, the franchise agreement states that the Guaranty shall be governed by and construed in accordance with the laws of the state of Ohio, without giving effect to its principles of conflicts of law. This means that Ohio law will dictate how the agreement is interpreted and enforced, except where it conflicts with other laws.
However, the agreement also specifies that any Ohio law for the protection of franchisees or business opportunity purchasers, including the Ohio Business Opportunity Purchasers Protection Act, will not apply unless its jurisdictional requirements are met independently without reference to this section. This clause suggests that Better Blend aims to limit the applicability of Ohio-specific franchise protection laws unless those laws would apply regardless of the franchise agreement's stipulations. This could impact the legal rights and protections available to franchisees, depending on their location and the specific circumstances of any dispute.