What state's laws govern the Face Foundrie employment 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, with some exceptions, is governed by the laws of Minnesota. Specifically, Section 19.04 states that the agreement is governed by Minnesota law 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.
However, there are exceptions 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. In this case, if the state in which the franchised business is located has a statute that specifically governs relationships between franchisees and franchisors, then that particular law will apply instead of the Minnesota Franchise Act.
This means that while Minnesota law generally applies to the franchise agreement, franchisees operating outside of Minnesota may find that their local state laws take precedence, particularly if those laws specifically address franchise relationships. Prospective franchisees should be aware of this and understand which laws will govern their agreement based on their residency and the location of their Face Foundrie Facial Bar.