Does the choice of law for the Burneys Sweets More Franchise Agreement include exceptions?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY |
|---|---|---|
| w. Choice of law | Franchise Agreement § 21(g) | North Carolina law, except federal Lanham Act and federal Arbitration Act, which choice of law is subject to the subjectivity of individual state laws. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 41–46)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the Franchise Agreement specifies that North Carolina law governs the agreement. However, there are exceptions to this rule.
The choice of law provision is subject to the federal Lanham Act and the federal Arbitration Act. This means that while North Carolina law generally applies, federal laws will take precedence in matters covered by these specific federal acts.
Additionally, the choice of law is subject to the subjectivity of individual state laws. This implies that if a franchisee's state law conflicts with the choice of North Carolina law, the franchisee's state law may supersede the agreement's choice of law provision in certain circumstances. Prospective franchisees should consult with a legal professional to understand how these exceptions might affect them based on their location.