What state's laws govern the Big O Tires agreement and the rights and obligations of the parties?

According to the 2025 Big O Tires Franchise Disclosure Document, the laws of the State of Colorado govern the interpretation of the franchise agreement and any disputes between Big O Tires and the franchisee. Specifically, the internal substantive laws of Colorado, rather than its conflict of laws principles, will be used. This means that if a disagreement arises concerning the franchise agreement, Colorado law will dictate how the agreement is interpreted and how the dispute is resolved.

However, there is an exception regarding disputes involving Tekmetric, a technology provider. If Tekmetric is a party to the dispute, the laws of the State of Delaware will govern the interpretation, and the dispute will be subject to the jurisdiction and venue of the appropriate Federal or State courts located in Palm Beach County, Florida. Injunctive or equitable relief, however, may be submitted to the appropriate Federal or State Courts in Palm Beach County, Florida or Harris County, Texas.

This clause is important for prospective franchisees as it clarifies which state's laws will apply in case of a legal dispute, and where such disputes may be heard. Franchisees should be aware of the specific legal framework that governs their agreement and understand the implications of potentially having disputes resolved in a state other than where their franchise is located.