What does Section 23.1 of the Craters & Freighters Franchise Agreement pertain to?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item | Provision | Section in | Summary |
|---|---|---|---|
| Franchise Agreement | |||
| 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 the 2025 Craters & Freighters Franchise Disclosure Document, Section 23.1 of the Franchise Agreement addresses choice of law and choice of forum. Specifically, unless governed by the United States Trademark Act (Lanham Act) or other federal law, Colorado law applies to the agreement, subject to applicable state law. Additionally, any litigation must occur in Colorado, also subject to applicable state law.
For a prospective Craters & Freighters franchisee, this means that the interpretation and enforcement of the franchise agreement will generally be governed by Colorado law, regardless of where the franchisee's business is located. However, federal trademark laws will take precedence where applicable. Any legal disputes that arise and result in litigation will need to be pursued in the state of Colorado.
This is a standard clause in franchise agreements, as franchisors typically prefer to have disputes resolved in their home state. Franchisees should be aware of this requirement and consider the potential costs and inconveniences of litigating in Colorado if a dispute arises with Craters & Freighters.