What law governs the Cordova franchise agreement?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| v. Choice of forum | 18.G. | Except for certain claims for injunctive relief, all litigation |
|---|---|---|
| proceedings must be conducted in the appropriate State or Federal | ||
| Court within or closest to either Douglas County, Nebraska or the | ||
| State or Federal Court nearest to our corporate headquarters at the | ||
| time such action is commenced. This provision is subject to | ||
| applicable state law. | ||
| w. Choice of law | 18.F. | Nebraska law will govern. However, this provision is subject to |
| state law and as otherwise disclosed in Exhibit I to this Disclosure | ||
| Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–37)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by Nebraska law. However, this is subject to state law and as otherwise disclosed in Exhibit I to the Disclosure Document. Prospective franchisees should carefully review Exhibit I to understand any exceptions or specific state law provisions that may apply to their franchise agreement.
The choice of law provision is a standard clause in franchise agreements, specifying which jurisdiction's laws will be used to interpret and enforce the agreement. While Cordova designates Nebraska law, the caveat regarding state law and Exhibit I suggests that certain aspects of the agreement may be governed by the laws of the state in which the franchise is located. This is common in franchising, as state laws often regulate specific aspects of the franchise relationship, such as franchise registration, termination rights, and non-compete agreements.
It is important for potential Cordova franchisees to understand the implications of the choice of law provision. While Nebraska law will generally apply, franchisees should be aware of any state-specific laws that may affect their rights and obligations under the franchise agreement. Consulting with an attorney experienced in franchise law is recommended to fully understand the legal framework governing the Cordova franchise agreement in their particular state.