Under the Beverly Anns Cookie agreement, which state's laws govern the interpretation of the agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. This Agreement will be governed by, construed, and enforced under the laws of Kentucky, and the courts in that state shall have jurisdiction over any legal proceedings arising out of this Agreement.
- d. Each section of this Agreement, including each subsection and portion, is severable. If any section, subsection, or portion of this Agreement is unenforceable, it shall not affect the enforceability of any other section, subsection, or portion; and each party to this Agreement agrees that the court may impose such limitations on the terms of this Agreement as it deems in its discretion necessary to make such terms enforceable.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the laws of Kentucky govern the interpretation, construction, and enforcement of the franchise agreement. This means that any legal proceedings related to the agreement will be subject to Kentucky law, and the courts in Kentucky will have jurisdiction over such proceedings.
This is a standard clause in franchise agreements, specifying which state's laws will apply in case of disputes. It provides clarity and predictability for both the franchisor and the franchisee. Franchisees should be aware of the implications of this clause, as it may affect their legal rights and obligations.
Furthermore, the agreement includes a severability clause, stating that if any part of the agreement is deemed unenforceable, the remaining parts will still be valid. The court may also impose limitations to make the terms enforceable. This ensures that the entire agreement is not invalidated due to a single unenforceable provision.