What state's laws govern the Face Foundrie agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.04 Governing Law. Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. § 1050 et seq.), as amended, or the United States Arbitration Act (9 U.S.C. § 1 et seq.), this Agreement will be governed by the laws of the State of Minnesota without regard to its conflicts of laws provisions.
The parties agree, however, that if Franchisee is not a resident of Minnesota, and if the Facial Bar is not located in Minnesota, then they hereby waive the provisions of the Minnesota Franchise Act, Minnesota Statutes, Section 80C.01, et seq. and the regulations promulgated thereunder.
If the Minnesota Franchise Act would not otherwise apply to the franchise relationship created hereby, but there is a statute in the state in which the business franchised hereunder is located that specifically governs relationships between franchisees and franchisors, then that particular law will apply in lieu of the Minnesota Franchise Act.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by the laws of Minnesota. Specifically, the document states that the laws of the State of Minnesota will govern the agreement without regard to its conflicts of laws provisions, except to the extent governed by the United States Trademark Act of 1946 or the United States Arbitration Act. This means that in most situations, Minnesota law will be used to interpret and enforce the franchise agreement.
However, there is an exception to this rule. If a Face Foundrie franchisee is not a resident of Minnesota and the Facial Bar is not located in Minnesota, then the franchisee waives the provisions of the Minnesota Franchise Act. This indicates that Face Foundrie aims to apply Minnesota law unless the franchisee and the business are both located outside of Minnesota.
Furthermore, if the Minnesota Franchise Act does not apply but there is a state law where the franchised business is located that specifically governs relationships between franchisees and franchisors, then that state law will take precedence over the Minnesota Franchise Act. This ensures that local laws designed to protect franchisees are applied where relevant, adding a layer of legal consideration for prospective Face Foundrie franchisees depending on their location.