Does the Crisp & Green Area Development Agreement specify the same choice of law as the Franchise Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| or Other Agreement | |||
| u. Dispute resolution by arbitration or mediation | Section 18.05 – Franchise Agreement and Section 9 – Area Development Agreement | Except for claims for injunctive relief, we make seek against you, all disputes must be arbitrated in the city closest to our corporate headquarters (currently Wayzata, MN). Subject to applicable state law. | |
| v. Choice of forum | Section 18.07 – Franchise Agreement and Section 9 – Area Development Agreement | Subject to applicable state law, disputes must be arbitrated or litigated in the city closest to our corporate headquarters (currently Wayzata, MN). | |
| w. Choice of law | Section 18.08 – Franchise Agreement and Section 9 – Area Development Agreement | Subject to applicable state law, Minnesota law applies, provided that the Minnesota Franchise Act and other franchise-specific laws and regulations of the State of Minnesota generally do not apply to Restaurants located outside of Minnesota. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 52–57)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Area Development Agreement and the Franchise Agreement both specify the same choice of law. Specifically, both agreements state that Minnesota law applies. However, this is subject to applicable state law and with the exception that the Minnesota Franchise Act and other franchise-specific laws and regulations of the State of Minnesota generally do not apply to Restaurants located outside of Minnesota.
This means that the interpretation and enforcement of both the Franchise Agreement and the Area Development Agreement will generally be governed by Minnesota law. However, if a Crisp & Green restaurant is located outside of Minnesota, the franchise-specific laws of Minnesota will not apply to that location. This could have implications for franchisees operating in states with strong franchise laws, as they may not be able to rely on those protections.
It is important for prospective Crisp & Green franchisees to understand the choice of law provisions in both the Franchise Agreement and the Area Development Agreement, and how they may impact their rights and obligations. Franchisees should consult with an attorney to determine the specific implications of these provisions for their individual circumstances, especially if they are planning to operate a Crisp & Green restaurant outside of Minnesota.