Does the Desi District Guaranty specify that Texas conflict of law principles are not considered?

According to Desi District's 2024 Franchise Disclosure Document, the Guaranty agreement specifies that the laws of Texas govern the agreement without regard to its conflict of law principles. This means that if there is a legal dispute regarding the Guaranty, Texas law will be applied, but the court will not use Texas's conflict of laws rules to determine which state's laws should govern. This provides a level of predictability and consistency in the interpretation and enforcement of the Guaranty.

Specifically, the Guaranty states that it "shall be governed by and construed in accordance with the laws of the state of Texas (without giving effect to its principles of conflicts of law)." This clause ensures that Texas law will be used directly, rather than potentially deferring to the laws of another jurisdiction based on conflict of law rules.

This approach is common in franchise agreements to ensure uniformity and avoid the complexities of differing state laws. Prospective Desi District franchisees should be aware that any disputes related to the Guaranty will be resolved under Texas law, regardless of where the franchisee or guarantor resides.