factual

Which state's laws govern the City Wide release agreement?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Choice of Law. This Release shall be construed in accordance with and all disputes hereunder shall be governed by the laws of the State of Kansas. If any legal action is necessary to enforce the terms and conditions of this Release, the parties hereby agree that any action sought to be brought by either party, shall be brought in the appropriate state or federal court covering Johnson County, Kansas with jurisdiction over the matter.

ATTEST: CITY WIDE FRANCHISE COMPANY, INC. ATTEST/WITNESS: **

Source: Item 23 — RECEIPT (FDD pages 65–271)

What This Means (2025 FDD)

According to the 2025 City Wide Franchise Disclosure Document, the laws of Kansas govern the release agreement. Specifically, the document states that the release agreement should be construed in accordance with Kansas law, and any disputes related to the agreement will also be governed by Kansas law. Furthermore, any legal action to enforce the release agreement must be brought in a state or federal court covering Johnson County, Kansas, provided that the court has jurisdiction over the matter.

This means that if a City Wide franchisee signs a release agreement and a dispute arises, the interpretation and enforcement of that agreement will be subject to Kansas law, regardless of where the franchisee's business is located. Franchisees need to be aware of Kansas law and how it might affect their rights and obligations under the release agreement.

It is important to note that the FDD also states that the release does not waive any liability the franchisor may have under the Washington Franchise Investment Protection Act. This indicates that while Kansas law generally applies, certain state-specific franchise laws may override this provision in particular circumstances. Franchisees in Washington State retain certain protections under their local franchise laws, notwithstanding the general applicability of Kansas law to the release agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.