For Boulder Designs franchises in Indiana, to what is the choice of Texas law subject?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17 is supplemented by adding the following language to the end of the "Summary" section of Item 17(w) (Choice of law): The choice of Texas law shall be subject to the superseding provisions in Indiana's Franchise Acts, IC 23-2-2.5 and 2.7.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, for franchises in Indiana, the choice of Texas law is subject to the superseding provisions in Indiana's Franchise Acts, specifically IC 23-2-2.5 and 2.7. This means that while the franchise agreement may state that Texas law governs the agreement, any provisions that conflict with Indiana's franchise laws will be superseded by Indiana law.
For a prospective Boulder Designs franchisee in Indiana, this is an important protection. It ensures that certain rights and protections afforded by Indiana law cannot be waived or overridden by the choice of Texas law in the franchise agreement. This can cover a range of issues, including dispute resolution, termination rights, and non-compete clauses.
It is common for franchise agreements to include a choice of law provision, specifying which state's laws will govern the interpretation and enforcement of the agreement. However, many states have franchise-specific laws that are designed to protect franchisees, and these laws often take precedence over the chosen law in the agreement. Therefore, prospective franchisees should always be aware of the franchise laws in their own state and how they may impact the terms of the franchise agreement.