What state's laws govern the Bombs Away Guaranty?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- **5.
Governing Law; Dispute Resolution.** This Guaranty shall be governed by and construed in accordance with the laws of the state of California (without giving effect to its principles of conflicts of law).
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 6.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Guaranty agreement is governed by the laws of California. Specifically, the laws of California will be used to interpret the Guaranty, but without regard to its principles regarding conflicts of law.
However, the FDD also states that any California law intended to protect franchisees or business opportunity purchasers will not be applicable unless the jurisdictional requirements are independently satisfied, without relying on the specific section of the agreement.
This means that while California law generally applies to the Guaranty, certain California laws designed to protect franchisees might not apply unless the franchisee can demonstrate a separate basis for the application of those protective laws.