For disputes involving Carvel's non-competition covenants, which state's laws will govern?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | |||
| w. Choice of law | FA: 15.6 and 22.5 | Subject to state law, Georgia law applies to all disputes except those related to the non-competition covenants, which will be governed by the laws of the state in which your Shoppe is located. |
Source: Item 19 — Financial Performance Representations (FDD pages 91–93)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Georgia law generally applies to disputes arising from the franchise agreement. However, an exception exists for disputes related to the non-competition covenants.
For these specific disputes, the laws of the state in which the Carvel Shoppe is located will govern. This means that if a franchisee operates a Carvel location in California, California law would apply to any legal disagreements about the non-competition agreement, regardless of the general choice of law.
This is a significant point for prospective franchisees to consider. Non-competition agreements can vary substantially from state to state, and understanding the specific laws that will govern such disputes is crucial. Franchisees should consult with legal counsel to fully understand the implications of the non-competition covenants and the laws of the state where their Carvel Shoppe will be located.