Under the Participation Agreement for Dq Treat locations, which state's laws govern the agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Governing Law. This Participation Agreement will be governed by and construed in accordance with the laws of Delaware, excluding conflict of law principles. Any legal action or proceeding arising under this Participation Agreement will be brought exclusively in the federal or state courts located in the State of Delaware, and the parties hereby irrevocably consent to personal jurisdiction and venue therein.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, the Participation Agreement is governed by the laws of Delaware. Specifically, the agreement will be construed in accordance with Delaware law, excluding any conflict of law principles. This means that any disputes arising from the Participation Agreement will be interpreted and resolved using Delaware's legal statutes.
Furthermore, any legal actions or proceedings related to the Participation Agreement must be brought exclusively in the federal or state courts located in Delaware. By entering into the Participation Agreement, all parties irrevocably consent to the personal jurisdiction and venue within the State of Delaware. This clause ensures that all legal matters are handled within a specific jurisdiction, providing clarity and predictability for both Dq Treat and its franchisees.
This is a fairly standard practice in franchising, as franchisors often choose a specific state's laws to govern their agreements to ensure consistency and predictability in legal interpretations. Prospective Dq Treat franchisees should be aware of this and understand that any legal issues related to the Participation Agreement will be subject to Delaware law and resolved in Delaware courts.