Under the Creative World School franchise agreement, what law governs the agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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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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- Item 17 is amended by adding the following language after the table:
- (b) Any claims arising under the Maryland Law must be brought within 3 years after the grant of the franchise.
- (c) A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, 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. Additionally, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void, although the agreement may provide for arbitration to take place outside of Illinois. Any condition, stipulation, or provision contained in the Agreement purporting to waive compliance with any provision of the Illinois Act or any other Illinois law is void.
For franchisees in Minnesota, Minnesota statutes prohibit Creative World School from requiring litigation to be conducted outside of Minnesota. Furthermore, nothing in the disclosure document or agreement can abrogate or reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
For franchisees in Maryland, any claims arising under the Maryland Law must be brought within 3 years after the grant of the franchise. A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. All representations requiring prospective franchisees to assent to a release, estoppel or wavier of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.