What is the section number in the Counselor Realty Franchise Agreement that specifies the choice of law?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Franchise or Other Agreement | Summary |
|---|---|---|
| w. Choice of law | Section 13.2 | Minnesota law applies (except Minnesota Franchises Law applies only to franchisees whose principal place of business is located in Minnesota and to whom Minnesota Franchise Act applies by its own terms) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, Section 13.2 of the Franchise Agreement specifies the choice of law. In general, Minnesota law applies to the agreement. However, the Minnesota Franchise Law applies only to franchisees whose principal place of business is located in Minnesota and to whom the Minnesota Franchise Act applies by its own terms.
This means that if a dispute arises between Counselor Realty and a franchisee, the laws of Minnesota will generally govern the interpretation and enforcement of the Franchise Agreement. However, if the franchisee's principal place of business is in Minnesota, the Minnesota Franchise Act may also apply, providing additional protections to the franchisee under state law. Franchisees should be aware of which laws govern their agreement, as this can impact their rights and obligations.
Choice of law provisions are standard in franchise agreements to provide clarity and predictability regarding which jurisdiction's laws will be applied in the event of a dispute. Franchisees should consult with an attorney to understand the implications of the choice of law provision in their specific circumstances, especially if they are located outside of Minnesota.