For Beyond Juicery Eatery, what state's law applies to disputes, subject to state law?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to state law, Michigan law applies, except that disputes over the Marks will be governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sec. 1051 et seq.) and disputes over copyrights will be governed by federal copyright laws of the United States, except that the Michigan Franchise Investment Law does not apply to you unless you are a resident of the state of Michigan or your Territory is within the state of Michigan.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 56–58)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, Michigan law applies to disputes, subject to state law. Specifically, the FDD states that Michigan law governs disputes, except for those concerning the brand's trademarks, which fall under the United States Trademark Act of 1946, and copyrights, which are governed by federal copyright laws of the United States. However, the Michigan Franchise Investment Law will not apply if the franchisee is not a resident of Michigan or if their territory is not within Michigan.
This means that if a potential franchisee is not located in Michigan, the Michigan Franchise Investment Law will not be applicable to them. However, the general laws of Michigan will still govern any disputes, unless they pertain to trademark or copyright issues, which are governed by federal laws. This is a fairly standard practice in franchising, where franchisors often specify a particular state's law to govern the franchise agreement, while also acknowledging the applicability of federal laws for specific issues like intellectual property.
Prospective franchisees should be aware of this clause, especially if they are not residents of Michigan, as it means they may need to familiarize themselves with Michigan law in the event of a dispute. It is advisable to seek legal counsel to understand the implications of this choice of law provision and how it may affect their rights and obligations under the franchise agreement. Understanding which laws govern the agreement is crucial for protecting their investment and ensuring fair treatment throughout the franchise relationship.