What state's laws govern the Bombs Away franchise agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| other agreement | ||
| parties. This provision does not limit our | ||
| right to modify the Manual or system | ||
| specifications. | ||
| t. Integration/merger | Only the terms of the franchise agreement | |
| clause | ||
| and other written agreements are binding | ||
| (subject to state law). Any representations | ||
| or promises outside of the disclosure | ||
| document and franchise agreement may not | ||
| be enforceable. However, no claim made in | ||
| any franchise agreement is intended to | ||
| disclaim the representations made in this | ||
| Disclosure Document. | ||
| u. Dispute resolution by | All disputes are resolved by arbitration | |
| arbitration or mediation | ||
| (except for injunctive relief) (subject to | ||
| applicable state law). | ||
| v. Choice of forum | Arbitration will take place where our | |
| headquarters is located (currently, | ||
| Campbell California) (subject to applicable | ||
| state law). Any legal proceedings not | ||
| subject to arbitration will take place in the | ||
| District Court of the United States, in the | ||
| district where our headquarters is then | ||
| located, or if this court lacks jurisdiction, | ||
| the state courts of the state and county | ||
| where our headquarters is then located | ||
| (subject to applicable state law). | ||
| w. Choice of law | § 18.8 | California (subject to applicable state law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchise agreement is governed by California law. However, this is subject to applicable state law, meaning that certain provisions may be superseded or modified based on the franchisee's location.
This "choice of law" provision is a standard clause in franchise agreements. It establishes which state's legal code will be used to interpret the contract in case of disputes. While Bombs Away designates California law, the caveat "subject to applicable state law" acknowledges that some aspects of franchise law vary from state to state. For example, certain states have franchise relationship laws that protect franchisees from unfair termination, regardless of what the franchise agreement says.
For a prospective Bombs Away franchisee, this means that while California law forms the basis of the agreement, the laws of their own state may also come into play, particularly concerning franchise termination, renewal, and transfer. It is important to consult with a legal professional to understand how both California law and the franchisee's local state laws will affect their rights and obligations under the Bombs Away franchise agreement.