In the event of a conflict of laws regarding a Deck Medic franchise, which legal provisions will prevail?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota Franchisees, North Dakota law shall apply."
- Sub-Article 14.C.(6). Sub-article 14.C.(6), under the Article section titled "Conditions for Approval of Transfer," is supplemented by the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied; and
The Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement. If this Sub-article contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
- Sub-Article 15.B.(8). Sub-article 15.B.(8), under the Article section titled "Conditions for Renewal," is supplemented by the addition of the following:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied; and
The Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement. If this subarticle contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the answer to which legal provisions will prevail in the event of a conflict of laws depends on the state where the franchise is located. For instance, in Washington, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail in the event of a conflict of laws. Similarly, in North Dakota, for franchisees in North Dakota, North Dakota law shall apply. Finally, in Hawaii, the Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement. If this Sub-article contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
These state-specific amendments to the Deck Medic franchise agreement are crucial for prospective franchisees. They ensure that franchisees' rights are protected under the laws of their respective states, particularly in areas such as termination, renewal, transfer, and dispute resolution. These amendments also address issues like non-compete covenants, waivers of rights, and the application of local franchise laws.
It is important for potential Deck Medic franchisees to carefully review the specific amendments applicable to their state. Understanding these provisions can help franchisees navigate their relationship with the franchisor and ensure compliance with local regulations. Franchisees should also consult with legal counsel to fully understand their rights and obligations under the franchise agreement and applicable state laws.
These state-specific amendments reflect a common practice in franchising, where franchisors adapt their agreements to comply with varying state laws. This approach helps to ensure that the franchise agreement is enforceable and that franchisees are afforded the protections required by local regulations. By addressing potential conflicts of law and incorporating state-specific provisions, Deck Medic aims to create a more balanced and legally sound franchise relationship.