Does the Chocolate Fish Coffee franchise agreement supersede state franchise law?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding any provision of the Agreement to the contrary, the New York Franchises Law shall govern any claim arising under that law.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, the Chocolate Fish Coffee franchise agreement does not automatically supersede state franchise law. Several riders are included that specifically address how the franchise agreement interacts with the franchise laws of certain states. For example, the New York Rider states that "Notwithstanding any provision of the Agreement to the contrary, the New York Franchises Law shall govern any claim arising under that law." This means that the New York Franchise Law takes precedence over conflicting terms in the standard Chocolate Fish Coffee franchise agreement within the state of New York. A similar rider exists for Maryland.
For Minnesota, the rider includes specific amendments to ensure compliance with Minnesota Statutes, particularly regarding limitations on claims. This indicates that Chocolate Fish Coffee acknowledges and incorporates state-specific legal requirements rather than attempting to override them. The Maryland Rider also emphasizes that the agreement should not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Law.
These riders demonstrate that Chocolate Fish Coffee intends to comply with state franchise laws and that the franchise agreement is subject to modifications based on the specific legal requirements of each state where franchises are offered. Prospective franchisees should carefully review the rider applicable to their state (if any) and consult with an attorney to understand how state law affects their rights and obligations under the franchise agreement. This is a common practice in franchising to ensure compliance and protect both the franchisor and franchisee.