What is the choice of law for the Chicken Guy Franchise Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise and development agreements provide for application of the laws of Florida. This provision may not be enforceable under California law.
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Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law shall govern any claim arising under that Law.
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Notwithstanding the foregoing, the New York Franchises Law shall govern any claim arising under that law.
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- Illinois law governs the Franchise Agreement.
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Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to claims arising under the North Dakota Franchise Investment Law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, the franchise agreement generally applies the laws of Florida. However, this is subject to certain exceptions and stipulations based on the franchisee's location. For instance, the FDD states that for California franchisees, this provision may not be enforceable under California law. Similarly, for franchisees in Maryland, New York, Illinois, and North Dakota, the franchise laws of those states will govern claims arising under their respective franchise laws, regardless of what the agreement says.
For a prospective Chicken Guy franchisee, this means that while the franchise agreement is drafted under Florida law, the actual governing law may vary depending on the state in which the franchise operates. This is particularly important in areas like transfer, termination, non-renewal, and dispute resolution, where state laws often provide specific protections for franchisees. The FDD includes addenda for several states that modify the standard agreement to comply with local franchise laws.
It is crucial for potential franchisees to understand which state laws will apply to their franchise agreement, as these laws can significantly impact their rights and obligations. Chicken Guy franchisees should consult with a legal professional to fully understand the implications of the choice of law provision and how it interacts with the franchise laws of their state. This will help ensure they are aware of their rights and can navigate any potential disputes effectively.
In summary, while the Chicken Guy franchise agreement specifies Florida law, state-specific addenda and franchise laws can override this provision, providing franchisees with protections and rights under their local jurisdiction. Franchisees should pay close attention to any addenda applicable to their state and seek legal counsel to fully understand their rights and obligations.