Which state's law governs the Creative World School agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Governing Law. Section 20.7 of the Agreement is amended in its entirety to read as follows:
Illinois law governs the Franchise Agreement and all related agreements. .
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- Governing Law. The following sentence is added at the end of Section 20.07:
MINN. STAT. §80C.21 AND MINN. RULE 2860.4400J PROHIBIT US FROM REQUIRING LITIGATION TO BE CONDUCTED OUTSIDE MINNESOTA. IN ADDITION, NOTHING IN THE DISCLOSURE DOCUMENT OR AGREEMENT CAN ABROGATE OR REDUCE ANY OF YOUR RIGHTS AS PROVIDED FOR IN MINNESOTA STATUTES, CHAPTER 80C, OR YOUR RIGHTS TO ANY PROCEDURE, FORUM, OR REMEDIES PROVIDED FOR BY THE LAWS OF THE JURISDICTION.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the governing law for the franchise agreement depends on the state in which the franchise is located. For franchisees in Illinois, Illinois law governs the Franchise Agreement and all related agreements. For franchisees in Minnesota, Minnesota Statutes prohibit Creative World School from requiring litigation to be conducted outside of Minnesota, and the agreement cannot reduce any rights provided under Minnesota Statutes, Chapter 80C. For all other states, this information was not available in the provided excerpts.
This means that if a Creative World School franchisee is based in Illinois, any legal disputes related to the franchise agreement will be interpreted and resolved under Illinois law. Similarly, Minnesota franchisees have specific protections under Minnesota law that cannot be waived or reduced by the franchise agreement. This ensures that franchisees are subject to the laws and protections of their home state.
Prospective franchisees should carefully review the specific addendum or rider applicable to their state to understand which laws govern their franchise agreement. If a state-specific addendum is not provided, it is important to clarify with Creative World School which state's laws will govern the agreement. Understanding the governing law is crucial for understanding a franchisee's rights and obligations under the agreement and for resolving any potential legal disputes.