For Crisp & Green, what law governs the Franchise Agreement, subject to applicable state law?
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 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 57–62)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Franchise Agreement is governed by Minnesota law, subject to applicable state law. However, 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 is detailed in Section 18.08 of the Franchise Agreement and Section 9 of the Area Development Agreement.
This means that while Minnesota law forms the basis of the agreement, any state-specific laws where the franchise is located will take precedence. For franchisees operating outside of Minnesota, the protections and regulations offered by Minnesota's franchise laws may not apply. This could impact how disputes are resolved and what rights the franchisee has.
Prospective franchisees should be aware of this and understand how the laws of their own state interact with the terms of the Crisp & Green Franchise Agreement. It is advisable to seek legal counsel to fully understand the implications of this clause, especially if the franchisee's restaurant will be located outside of Minnesota. Understanding the interplay between Minnesota law and local state laws is crucial for protecting the franchisee's interests and ensuring compliance.