In the event of a conflict of law, which state's laws prevail for the Crepe De Licious agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guarantee shall be interpreted and construed under the laws of the State of Delaware. In the event of any conflict of law, the laws of the State of Delaware shall prevail (without regard to, and without giving effect to, the application of Delaware conflict of law rules).
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the laws of the State of Delaware will prevail in the event of any conflict of law. This applies specifically to the interpretation and construction of the Guarantee, Indemnification, and Acknowledgement document. The application of Delaware law occurs without regard to, and without giving effect to, the application of Delaware conflict of law rules.
This means that if there are conflicting legal interpretations, Delaware law will be the standard used to resolve the issue. This is important for prospective franchisees to understand, as it dictates which state's legal framework will govern the agreement, regardless of the franchisee's location.
Franchise agreements often specify a particular state's laws to govern the agreement to provide clarity and predictability in legal matters. Specifying Delaware law is a common practice, as Delaware is often seen as having a business-friendly legal environment. Franchisees should be aware of the implications of this clause and how it might affect their rights and obligations under the franchise agreement.