What state's laws govern adversarial proceedings between Bombs Away and its franchisees?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.8 Governing Law. The laws of the state of California (without giving effect to its principles of conflicts of law) govern all adversarial proceedings between the parties.
The parties agree that any California law for the protection of franchisees or business opportunity purchasers will not apply unless its jurisdictional requirements are met independently without reference to this Section 18.8.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the laws of California govern all adversarial proceedings between Bombs Away and its franchisees. This is specified in Section 18.8 of the franchise agreement, which addresses governing law. However, this is without regard to California's principles of conflicts of law.
This means that if a dispute arises between a franchisee and Bombs Away that leads to legal action, California law will be used to interpret the franchise agreement and resolve the dispute. This applies to all adversarial proceedings, suggesting a broad application to different types of legal conflicts.
It is important to note that any California law designed to protect franchisees or business opportunity purchasers will only apply if its jurisdictional requirements are met independently, without relying on this specific section of the agreement. This could potentially limit the applicability of certain California laws intended to safeguard franchisees.
Prospective franchisees should be aware of this governing law provision and how it might affect their rights and obligations. They may want to consult with a legal professional to understand the implications of California law governing their franchise agreement, especially if they are not located in California.