What law governs all matters relating to arbitration between Chicken Guy and the franchisee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- **C.
Governing Law.** All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C.
Sections 1 et seq.).
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 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the Federal Arbitration Act (9 U.S.C. Sections 1 et seq.) governs all matters relating to arbitration between Chicken Guy and its franchisees. This means that federal law, rather than any state arbitration law, dictates the procedures and rules for resolving disputes through arbitration.
This is significant for a prospective franchisee because it establishes a consistent legal framework for arbitration across all Chicken Guy franchises, regardless of the state in which they operate. The Federal Arbitration Act is generally favored by franchisors as it can streamline dispute resolution and potentially limit exposure to state-specific laws that may be more favorable to franchisees.
However, the franchise agreement also specifies that the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.) or other federal law may also govern certain aspects, and that the laws of the State of Florida will govern the agreement and any claim or controversy, except to the extent governed by the Federal Arbitration Act. Franchisees should be aware of the interplay between these different governing laws and how they might affect their rights and obligations.
It is important for potential Chicken Guy franchisees to seek legal counsel to fully understand the implications of the Federal Arbitration Act and how it will apply to any disputes that may arise during the franchise term. Understanding the specific rules and procedures under this Act is crucial for protecting their interests in the event of a disagreement with Chicken Guy.