What California laws are recognized as requirements in the Franchise Agreement for Beyond Juicery Eatery?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
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- In recognition of the requirements of the California Franchise Investment Law, Cal Corp Code §§31000-31516 and the California Franchise Relations Act, Cal Bus And Prof Code §§20000- 20043, the Franchise Agreement for BEYOND JUICERY + EATERY FRANCHISING, LLC is amended as follows:
- The California Franchise Relations Act provides you rights concerning termination or non-renewal of the Franchise Agreement, which may supersede provisions in the Franchise Agreement, specifically Sections 13 and 16.
- Section 15.01, which terminates the Franchise Agreement upon your bankruptcy, may not be enforceable under federal bankruptcy law (11 USC Section 101, et. seq).
- Section 16.05 contains a covenant not to compete that extends beyond the expiration or termination of the Agreement; this covenant may not be enforceable under California Law.
- The Franchise Agreement requires litigation to be conducted in a court located outside of the State of California. This provision might not be enforceable for any cause of Action arising under California law.
- The Franchise Agreement requires application of the laws of a state other than California. This provision might not be enforceable under California law.
- Section 23 requires binding arbitration. The arbitration will occur at the forum indicated in Section 23.02, with the costs being borne by the non-prevailing party. Prospective Franchise Owners are encouraged to consult legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of the Franchise Agreement restricting venue to a forum outside of the State of California.
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- To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the Franchise Agreement recognizes the requirements of two California laws. These are the California Franchise Investment Law, specifically Cal Corp Code §§31000-31516, and the California Franchise Relations Act, specifically Cal Bus And Prof Code §§20000- 20043.
The FDD indicates that the California Franchise Relations Act provides franchisees with specific rights regarding the termination or non-renewal of their Franchise Agreement. These rights may override certain provisions outlined in Sections 13 and 16 of the standard Beyond Juicery Eatery Franchise Agreement.
Several sections of the standard Franchise Agreement may not be enforceable under California law. Section 15.01, which allows termination upon franchisee bankruptcy, might conflict with federal bankruptcy law. Section 16.05, containing a post-term covenant not to compete, may also be unenforceable. Additionally, clauses requiring litigation outside California or application of non-California laws might not hold up in California courts. Section 23, which mandates binding arbitration outside of California, may also be subject to scrutiny under California and federal laws. Prospective franchisees are advised to seek legal counsel to understand the implications of these clauses fully.
Beyond Juicery Eatery includes an addendum to the standard Franchise Agreement for franchisees in California to ensure compliance with California law. This addendum takes precedence over any conflicting terms in the original agreement. Prospective franchisees should carefully review this addendum with legal counsel to understand their rights and obligations under California law.