factual

Is there a specific section in the Craters & Freighters Franchise Agreement that addresses choice of law?

Craters_Freighters Franchise · 2025 FDD

Answer 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 Craters & Freighters's 2025 Franchise Disclosure Document, Section 23.1 of the Franchise Agreement addresses choice of law. In general, the agreement specifies that Colorado law governs the agreement. However, this is subject to both the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.) or other federal law and applicable state law.

This means that while Colorado law typically applies, federal trademark law and any relevant state laws could take precedence depending on the specific legal issue. This is a fairly standard clause in franchise agreements, as it attempts to balance the franchisor's preference for a uniform legal framework with the need to comply with federal and state regulations.

For a prospective Craters & Freighters franchisee, this clause indicates that disputes will generally be interpreted under Colorado law, which may be different from the laws in their own state. It is important to understand the implications of this clause, especially if the franchisee is located outside of Colorado. Franchisees should consult with a legal professional to understand how this choice of law provision may affect their rights and obligations under the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.