Is the provision requiring application of Pennsylvania laws in the Deka Lash franchise agreement enforceable under California law?

According to Deka Lash's 2024 Franchise Disclosure Document, the franchise agreement stipulates that Pennsylvania law governs the agreement. However, the FDD explicitly states that this provision might not be enforceable under California law. This is particularly relevant for prospective franchisees in California, as it suggests that certain aspects of the franchise agreement could be subject to California law despite the stated preference for Pennsylvania law.

This acknowledgment is important because California has specific franchise laws designed to protect franchisees. These laws cover various aspects of the franchise relationship, including termination, renewal, and transfer rights. If the Pennsylvania law provision is unenforceable in California, California's franchise laws would take precedence, potentially altering the rights and obligations of both Deka Lash and the franchisee.

Specifically, the FDD highlights that California Corporations Code §31512 voids any waiver of rights under the Franchise Investment Law (California Code §831000 through 31516), and Business and Professions Code §20010 voids any waiver of rights under the Franchise Relations Act (Business and Professions Code §820000 through 20043). This means that Deka Lash franchisees in California cannot waive their rights under these California laws, regardless of what the franchise agreement states about Pennsylvania law. Prospective franchisees should consult with a legal professional to fully understand the implications of this provision and how it may affect their franchise agreement.