What governing law applies to any dispute concerning the release in the Bombs Away franchise agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
In the event of any dispute concerning this Release, the dispute resolution, governing law, and venue provisions of the Franchise Agreement shall apply.
Releasor agrees to take any actions and sign any documents that Bombs Away Franchising reasonably requests to effectuate the purposes of this Release.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, any dispute concerning the General Release will be subject to the governing law provisions outlined in the Franchise Agreement. This means that the specific laws that will be used to interpret the General Release, and resolve any disputes related to it, are the same as those that govern the overall Franchise Agreement.
Specifically, the Franchise Agreement states that the laws of the state of California, without regard to its conflict of laws principles, govern all adversarial proceedings between the parties. However, any California law designed to protect franchisees or business opportunity purchasers will not apply unless its jurisdictional requirements are met independently, without relying on this particular section of the agreement.
This clause ensures consistency in legal interpretation across the entire franchise relationship, including any releases signed. However, franchisees should be aware that they may not be able to rely on California laws intended to protect franchisees unless they independently meet the requirements for those laws to apply.