Does the Crisp & Green FDD specify which state's laws govern 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 franchise agreement is generally governed by Minnesota law. However, this is subject to applicable state law, and 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 while Minnesota law forms the basis of the agreement, the laws of the state in which the franchise is located may also apply. This could potentially create complexities if there are conflicts between Minnesota law and the local state's laws. Franchisees should be aware that the application of law can vary depending on their location.
It is important for prospective Crisp & Green franchisees to seek legal counsel to understand how the choice of law provision in the franchise agreement will affect their specific situation, especially if they are located outside of Minnesota. Understanding the interplay between Minnesota law and local state laws is crucial for compliance and dispute resolution.