conditional

Do Utah laws for the protection of franchisees apply to the Crave Cookies Guaranty?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

The parties agree that any Utah law for the protection of franchisees or business opportunity purchasers will not apply unless its jurisdictional requirements are met independently without reference to this Section 6.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, Utah laws for the protection of franchisees or business opportunity purchasers will not apply to the Guaranty unless the jurisdictional requirements are met independently, without reference to the specific section of the agreement. This means that while the Guaranty agreement is governed by Utah law, the protections normally afforded to franchisees under Utah law may not automatically apply.

For a prospective Crave Cookies franchisee, this is a critical point to understand. The guarantor, who is typically a principal of the franchisee entity, should not assume they will receive the standard protections Utah law provides to franchisees. Instead, the guarantor must independently meet the jurisdictional requirements to be eligible for those protections.

This clause creates a higher hurdle for the guarantor to claim protection under Utah's franchise laws. It implies that the guarantor cannot rely on the franchise agreement itself to establish jurisdiction for protection under Utah law. Crave Cookies is essentially stating that the agreement's existence within Utah's legal framework does not automatically qualify the guarantor for the benefits of Utah's franchise-specific regulations. A prospective franchisee should seek legal counsel to fully understand the implications of this provision and determine what steps, if any, they can take to ensure they meet the jurisdictional requirements independently.

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.