Under what conditions will Texas law for the protection of franchisees apply to the Desi District MUDA?

According to Desi District's 2024 Franchise Disclosure Document, the laws of the State of Texas govern all adversarial proceedings between the parties involved in the Multi-Unit Development Agreement (MUDA). However, Texas law for the protection of franchisees or business opportunity purchasers will only apply if its jurisdictional requirements are met independently, without relying on the section of the agreement that specifies Texas law as governing.

In simpler terms, while the agreement states that Texas law governs disputes, the specific Texas laws designed to protect franchisees will only be applicable if the situation meets the separate, specific requirements laid out in those protective laws themselves. This means a Desi District franchisee cannot automatically assume that Texas franchise law will shield them simply because the MUDA states that Texas laws are in charge.

This condition ensures that the protections for franchisees under Texas law are applied only when the circumstances independently warrant it, preventing those protections from being broadly applied just because the agreement defaults to Texas law. A prospective franchisee should seek legal counsel to fully understand the implications of this provision and when they might be able to invoke Texas franchise law.