What state's laws govern the Crisp & Green 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. Specifically, Section 18.08 of the Franchise Agreement states that Minnesota law applies to disputes. 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 the agreement itself is based on Minnesota law, the laws of the state in which the Crisp & Green restaurant is located may also apply. This is a fairly standard practice in franchising, as it allows for a consistent agreement across all locations while still respecting local regulations.
For a prospective franchisee, this means understanding both Minnesota law and the laws of their own state. It would be prudent to consult with a legal professional to fully understand the implications of this clause, especially regarding dispute resolution and compliance with local franchise laws if operating outside of Minnesota. Franchisees should also confirm with Crisp & Green which specific aspects of Minnesota law will govern the agreement, and which aspects will be subject to local laws.