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Are there any exceptions to the choice of law provision in the Boulder Designs franchise agreement?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

ARTICLE 23 - DISPUTE RESOLUTION

Section 23.1 Choice of Law

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Boulder Designs Franchise Disclosure Document, the franchise agreement is governed by Texas law. Specifically, Section 23.1 states that all disputes will be resolved under Texas law. This means that the laws of Texas will be used to interpret the franchise agreement and resolve any legal conflicts that may arise between Boulder Designs and the franchisee.

Choice of law provisions are standard in franchise agreements. They provide clarity and predictability by specifying which jurisdiction's laws will apply. This can be beneficial for both the franchisor and franchisee, as it avoids potential disputes over which state's laws should govern the agreement. However, franchisees should be aware that this means they may have to travel to Texas or hire attorneys familiar with Texas law if a dispute arises.

While the FDD specifies that Texas law governs the agreement, it does not explicitly detail any exceptions to this rule. It is possible that certain federal laws or regulations could override the choice of law provision in specific circumstances. Additionally, if the franchisee is contracting as an individual, the laws of their state of residence may provide certain protections that cannot be waived by the franchise agreement.

Prospective Boulder Designs franchisees should consult with an attorney to fully understand the implications of the choice of law provision and whether any exceptions may apply based on their individual circumstances and location. It is important to be aware of the legal framework that will govern the franchise relationship and to assess any potential risks or benefits associated with it.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.