Under which state's laws will the Big O Tires Franchise Agreement be construed and governed?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- Governing Law/Jurisdiction. This Agreement shall be interpreted under the laws of the State of Colorado and any disputes between Big O and Franchisee shall be governed by, and determined in accordance with, the internal substantive laws (and not the laws of conflict) of the State of Colorado. Both parties agree to resolve any disputes arising out of this Agreement through arbitration as specified in the Franchise Agreement. Any such dispute to which Tekmetric is also a party shall instead be interpreted under the laws of the State of Delaware and will be submitted to the jurisdiction and venue of the appropriate Federal or State courts located in Palm Beach County, Florida, except that injunctive/equitable relief may be submitted to the appropriate Federal or State Courts in in Palm Beach County, Florida or Harris County, Texas.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the Franchise Agreement will be interpreted under the laws of Colorado. Any disputes between Big O Tires and the franchisee will be governed by and determined in accordance with the internal substantive laws of Colorado, not including its conflict of laws rules.
However, there is an exception for disputes involving Tekmetric, a technology provider. Disputes to which Tekmetric is also a party will be interpreted under the laws of Delaware. These disputes will be submitted to the jurisdiction and venue of the appropriate Federal or State courts located in Palm Beach County, Florida. Big O Tires can seek injunctive or equitable relief in Federal or State Courts in Palm Beach County, Florida, or Harris County, Texas.
For prospective franchisees in Illinois, the Illinois State Disclosure Addendum modifies this. The Franchise Agreement will be governed by and interpreted in accordance with Colorado law, but subject to the provisions of Illinois law to the extent that those provisions are applicable.