What state's law governs the Cinch I.T. Guaranty Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, which laws shall govern in the event of any conflict of laws, except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et. seq.). The Parties expressly consent to personal jurisdiction in the Commonwealth of Massachusetts and agree that, except as set forth in Section 21, the state and federal court(s) located in Worcester, Massachusetts will have exclusive jurisdiction for the purposes of carrying out this provision.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
Based on the 2024 Cinch I.T. Franchise Disclosure Document, the franchise agreement itself is governed by the laws of the Commonwealth of Massachusetts. However, the document does not explicitly state which state's laws govern the Guaranty Agreement.
Typically, a guaranty agreement is governed by the same state law as the primary agreement it supports, which in this case is Massachusetts. However, without a specific reference in the FDD, this remains uncertain.
A prospective Cinch I.T. franchisee should seek clarification from the franchisor regarding which state's laws govern the Guaranty Agreement. It would also be prudent to consult with a legal professional to fully understand the implications of the governing law, especially if it differs from the franchisee's state of residence or business operation.