Does the Coffee News franchise agreement state that it is governed by the laws of the State of Maine?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
tion through legal proceedings or otherwise, the undersigned shall pay to the Holder the costs and reasonable expenses of collection, including without limitation, reasonable attorney's fees.
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- This Schedule B and the Promissory Note contained herein shall be governed by and construed according to the laws of the State of Maine.
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Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the franchise agreement is governed by the laws of the State of Maine. Specifically, section 16.2 of the agreement states that any disputes or legal actions will be subject to Maine law. Additionally, Schedule B of the agreement, related to a Promissory Note, also specifies that it will be governed and construed according to Maine law.
This means that the laws of Maine will be used to interpret the franchise agreement and resolve any legal disputes that may arise between Coffee News and the franchisee. This is important for prospective franchisees to understand, as they may need to familiarize themselves with Maine law if they choose to invest in a Coffee News franchise. It also means that any legal proceedings would likely take place in Maine, which could involve travel and associated costs for franchisees located elsewhere.
It is common for franchise agreements to specify a particular state's laws to govern the agreement. This provides clarity and predictability for both the franchisor and the franchisee. However, franchisees should be aware of the implications of this clause, especially if they are located in a different state than the one specified in the agreement. Consulting with an attorney who is familiar with franchise law and the laws of the specified state is always a good idea before signing any franchise agreement.