What section of the Bft Franchise Agreement does the Rider add to regarding Governing Law?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Governing Law; Consent to Jurisdiction. The following is added to the end of Sections 16.1 (Governing Law) and 16.6 (Consent to Jurisdiction) of the Franchise Agreement: ; provided, however, Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. | Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Rider modifies the Franchise Agreement concerning governing law in several instances, depending on the franchisee's location. For franchisees in Maryland, the Rider adds to Section 16.1 (Governing Law) of the Franchise Agreement, allowing franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, with Maryland law applying to these specific claims.
For franchisees in Rhode Island, the Rider adds to Section 16.1 (Governing Law) of the Franchise Agreement, stating that Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act, as required by Section 19-28.1-14 of the Act.
For franchisees in Minnesota, the Rider adds a sentence to the end of Section 16.1 (Governing Law) of the Franchise Agreement, ensuring that nothing in the agreement reduces the franchisee's rights under Minnesota Statutes Chapter 80C or their right to any procedure, forum, or remedies provided by Minnesota law. This ensures that Bft franchisees retain all rights and protections afforded to them under Minnesota law, regardless of what the standard franchise agreement might otherwise stipulate.