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In California, what is the implication if the Buona Franchise Agreement's provisions regarding dispute resolution are inconsistent with California law?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

For Franchisees operating outlets located in California, the California Franchise Investment Law and the California Franchise Relations Act will apply regardless of the choice of law or dispute resolution venue stated elsewhere.

Any language in the Franchise Agreement or any amendment thereto or any agreement to the contrary is superseded by this condition.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, for franchisees operating outlets in California, the California Franchise Investment Law and the California Franchise Relations Act will take precedence, regardless of any conflicting choice of law or dispute resolution venue specified in the Franchise Agreement. This means that any clause within the agreement that contradicts California law will be superseded by California law.

This protection is explicitly stated in an addendum to the Franchise Agreement for the state of California. The addendum clarifies that any conflicting language in the Franchise Agreement, its amendments, or any other related agreement is overridden by this condition. This ensures that California franchisees are governed by the state's franchise laws, which are designed to protect their interests.

Prospective Buona franchisees in California should be aware of this provision, as it provides an added layer of legal protection. It is advisable to consult with a legal professional to fully understand the implications of California franchise law and how it applies to the specific terms of the Buona Franchise Agreement.

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.