What is the governing law for claims arising from the Chicken Guy agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent governed by the Federal Arbitration Act, the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C.
Sections 1051 et seq.), or other federal law, this Agreement, and any claim or controversy arising out of, or relating to, rights and obligations of the parties under this Agreement, and any other claim or controversy between the parties shall be governed by and construed in accordance with the laws of the State of Florida without regard to conflicts of laws principles.
Nothing in this Section is intended, or shall be deemed, to make any Florida law regulating the offer or sale of franchises or the franchise relationship applicable to this Agreement if such law would not otherwise be applicable.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the laws governing the franchise agreement are primarily those of the State of Florida. Specifically, the document states that the laws of Florida will be used to interpret the agreement and resolve any claims or disputes that arise between Chicken Guy and the franchisee. This applies to all aspects of the agreement, including the rights and obligations of both parties. However, there are exceptions to this rule.
The Federal Arbitration Act takes precedence over Florida state law when it comes to matters relating to arbitration. Additionally, federal laws such as the United States Trademark Act of 1946 (Lanham Act) will also govern where applicable. This means that if a dispute involves trademark issues, federal trademark law will be the guiding legal framework.
It's also important to note that the franchise agreement explicitly states that nothing within it is intended to make Florida's franchise laws applicable if they wouldn't otherwise apply. This clarification ensures that the agreement is interpreted under the correct legal standards, avoiding any unintended consequences from franchise-specific regulations in Florida. Therefore, prospective Chicken Guy franchisees should be aware that while Florida law generally governs the agreement, federal laws may supersede state laws in certain situations, particularly those involving arbitration or trademark issues.