In the event of a conflict of laws, which law prevails for Chatime franchises?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- Illinois law governs the Franchise Agreement.
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- In conformance with §4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
"However, the foregoing choice of law should not be considered a waiver of any right conferred upon the Franchisor or upon the Franchisee by Article 33 of the General Business Law of the State of New York."
"Notwithstanding the above, Maryland franchisees are permitted to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law."
Pursuant to Minn. Stat. §80C.21, this Section 27.16 will not in any way abrogate or reduce any of Franchisee's rights as provided for in the Minnesota Franchise Law and the Rules and Regulations promulgated thereunder by the Minnesota Commissioner of Commerce.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the franchise agreement is subject to certain state laws that may supersede the general choice of law. For franchisees in Illinois, Illinois law governs the Franchise Agreement, and any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois is permitted.
For franchisees in New York, the choice of law should not be considered a waiver of any right conferred upon the Franchisor or upon the Franchisee by Article 33 of the General Business Law of the State of New York. Similarly, for franchisees in Maryland, Maryland franchisees are permitted to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the general choice of law provision.
For franchisees in Minnesota, the Choice of Law clause will not in any way abrogate or reduce any of Franchisee's rights as provided for in the Minnesota Franchise Law and the Rules and Regulations promulgated thereunder by the Minnesota Commissioner of Commerce. These stipulations ensure that franchisees retain their rights and protections under state laws, regardless of what the general choice of law clause in the franchise agreement states.