Is the choice of law for the Craters & Freighters Franchise Agreement subject to applicable state law?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item | Provision | Section in Franchise Agreement | Summary |
|---|---|---|---|
| w. | Choice of law | Section 23.1 | Except to the extent governed by the United |
| States Trademark Act of 1946 (Lanham Act, | |||
| 15 U.S.C. Sections 1051 et seq.) or other | |||
| federal law, Colorado law applies, subject to | |||
| applicable state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 36–44)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the Franchise Agreement's choice of law is subject to applicable state law. Except when governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.) or other federal law, Colorado law applies. This means that while Craters & Freighters has chosen Colorado law to govern the agreement, state laws where the franchisee is located may also apply.
For a prospective Craters & Freighters franchisee, this is important because the laws of their state could potentially override or supplement aspects of Colorado law as it applies to the franchise agreement. This could affect how certain provisions of the agreement are interpreted and enforced. Franchisees should be aware that their rights and obligations might be influenced by their local state laws in addition to the terms outlined in the franchise agreement and Colorado law.
It is advisable for potential Craters & Freighters franchisees to consult with a legal professional in their state to understand how local laws might impact the franchise agreement. This will help them make informed decisions and ensure they are fully aware of their legal rights and responsibilities.