What state's laws govern the Face Foundrie franchise 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, except to the extent governed by the United States Trademark Act of 1946 or the United States Arbitration Act, the agreement will be governed by the laws of the State of Minnesota without regard to its conflicts of laws provisions.
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. Additionally, if the Minnesota Franchise Act would not otherwise apply, but there is a statute in the state where the franchised business is located that specifically governs relationships between franchisees and franchisors, then that particular law will apply instead of the Minnesota Franchise Act.
Furthermore, the FDD includes an addendum to the franchise agreement for use in Washington, and indicates that covenants not to compete are generally considered unenforceable in North Dakota. For franchisees in North Dakota, the agreement, the franchise, and all claims arising from the relationship between Face Foundrie and the franchisee will be governed by the laws of Minnesota without regard to its conflict of laws rules, except that any law regulating the sale of franchises or governing the relationship of a franchisor and its franchisee will not apply unless its jurisdictional requirements are met independently without reference to this section.