Which sections of the Beyond Juicery Eatery Franchise Agreement concerning termination or non-renewal may be superseded by the California Franchise Relations Act?
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.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the California Franchise Relations Act may supersede specific sections of the Franchise Agreement related to termination or non-renewal. For franchisees in California, this means that the rights provided by the California Franchise Relations Act take precedence over conflicting provisions in the standard Beyond Juicery Eatery Franchise Agreement. This is particularly relevant to Sections 13 and 16 of the agreement.
Specifically, the disclosure indicates that the California Franchise Relations Act grants franchisees certain protections regarding the termination or non-renewal of their franchise agreement. These protections could potentially override the terms outlined in Sections 13 and 16 of the Beyond Juicery Eatery Franchise Agreement if those sections are less favorable to the franchisee than what is mandated by California law.
Furthermore, Section 16.05, which includes a covenant not to compete extending beyond the termination or expiration of the agreement, might not be enforceable under California law. Additionally, the agreement's requirement for litigation to occur outside of California and the application of laws from a state other than California may also be unenforceable for actions arising under California law. Prospective franchisees should seek legal counsel to fully understand the implications of these provisions and how California law protects their rights.