What law governs the Closet Storage Concepts Franchise Agreement?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| s. | Modification of this | 11.1 | The Franchise Agreement may only be modified by |
|---|---|---|---|
| agreement | written amendment signed by both parties. | ||
| t. | Integration/merger clauses | 11.1 | The Franchise Agreement is the entire agreement between the parties (subject to state law). Notwithstanding the foregoing, nothing in any agreement is intended to disclaim the express representations made in the Franchise Disclosure Document, any other exhibits or amendments. |
| u. | Dispute resolution by arbitration or mediation | 11.2 | All disputes must be mediated, and then, if needed, litigated. |
| v. | Choice of forum | 11.3 | All actions must be commenced in the Courts of then- current State and County where our corporate headquarters is located (currently Camden County, New Jersey, or the United States District Court, District of New Jersey) (subject to applicable state law) |
| w. | Choice of law | 11.3 | New Jersey law applies (subject to applicable state law). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 49–55)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the Franchise Agreement is governed by New Jersey law, but this is subject to applicable state law. This means that while the agreement is generally interpreted under New Jersey law, any specific state laws that conflict with New Jersey law will take precedence.
This clause is important for prospective franchisees because it clarifies which state's laws will be used to interpret the Franchise Agreement in case of a dispute. However, the clause "subject to applicable state law" introduces a degree of uncertainty, as the specific laws that might override New Jersey law are not detailed in this section. Franchisees should be aware that the laws of their own state may have an impact on the enforcement and interpretation of the agreement, regardless of the primary choice of law.
It is typical for franchise agreements to include a choice of law provision, specifying which state's laws govern the agreement. This provides clarity and predictability. However, the caveat "subject to applicable state law" is also common, acknowledging that certain state-specific franchise laws may supersede the chosen law. Prospective Closet Storage Concepts franchisees should consult with a legal professional to understand how both New Jersey law and their local state laws may affect their rights and obligations under the Franchise Agreement.