Are there any exceptions to the choice of law provision in the Deka Lash franchise agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section In Franchise Agreement | Summary |
|---|---|---|
| Protected Area or any other Protected Area we have granted (subject to applicable state law). | ||
| s. Modification of the agreement | 16 | No modifications unless the parties agree in writing, except to Operations Manual. Revisions to the Manual will not unreasonably affect the franchisee’s obligations, including economic requirements, under the Agreement. |
| t. Integration/merger clause | 18 | Only the terms in the franchise agreement are binding (subject to federal or state law). Any representations or promises made outside the disclosure document and franchise agreement may not be enforceable. No claim in any franchise agreement(s) is intended to disclaim the express representations made in this Franchise Disclosure Document. |
| u. Dispute resolution by arbitration or mediation | 19.9; Franchise Agreement, Sch. C | You must mediate and arbitrate claims against us (subject to applicable state law). |
| v. Choice of forum | 19.2 | All claims must be brought in Pittsburgh, Pennsylvania (subject to applicable state law). |
| w. Choice of Law | 19.1 | Pennsylvania law governs (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the franchise agreement is generally governed by Pennsylvania law. However, this is subject to an exception. Specifically, the choice of law provision is "subject to applicable state law." This means that while Pennsylvania law typically applies, if a state law conflicts with Pennsylvania law, the state law will take precedence.
This exception is important for prospective Deka Lash franchisees because the laws governing franchise agreements can vary significantly from state to state. These variations can cover many aspects of the franchise relationship, including termination rights, renewal options, and dispute resolution processes. Franchisees need to be aware of the specific protections and regulations in their state, as these could override the standard terms outlined in the Deka Lash franchise agreement.
It is typical in franchising to see a choice of law provision, as it provides clarity and predictability. However, it is also common to see exceptions like this one, recognizing that state laws often have specific franchise regulations in place to protect franchisees. Prospective franchisees should consult with a legal professional to understand how the laws in their state might affect their franchise agreement with Deka Lash. This ensures they are fully informed of their rights and obligations under both the franchise agreement and applicable state laws.