What state's law applies to the Fat Shack Franchise Agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary | |
|---|---|---|---|
| t. | Integration/merger clause | Section 24.2 of FA; Section 8.7 of DA | Only terms of the Franchise Agreement and other related written agreements are binding (subject to state law). Any representations or promises outside of this Disclosure Document, the Franchise Agreement, and other related written agreements may not be enforceable. Nothing in the Franchise Agreement or in any other related written agreement is intended to disclaim any representations made by us in this Disclosure Document. |
| u. | Dispute resolution by | Article 22 of FA; Section 8.1 of | Arbitration or litigation in Denver, Colorado (subject to |
| arbitration or mediation | DA | state law). | |
| v. | Choice of forum | Section 22.5 of FA; Section 8.1 of DA | Arbitration or litigation in Denver, Colorado (subject to state law). |
| w. | Choice of law | Section 22.5 of FA; Section 8.3 of DA | Except for federal law, Colorado law applies (subject to applicable state law). |
Certain states have statutes that may supersede the Franchise Agreement in your relationship with us, including the areas of termination and renewal of your franchise rights. See the State Addenda to Franchise Disclosure Document which are attached to this Disclosure Document as Attachment L.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–46)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Franchise Agreement is generally governed by Colorado law. Specifically, Section 22.5 of the Franchise Agreement and Section 8.3 of the Development Agreement stipulate that, except for federal law, Colorado law will apply to the agreement. However, this is subject to applicable state law, meaning that certain state laws may supersede the agreement in specific areas, including termination and renewal of franchise rights.
This means that while Colorado law forms the basis of the legal framework, franchisees must also be aware of the laws in their specific state, which may have specific statutes that take precedence over certain aspects of the Franchise Agreement. These state-specific statutes are particularly relevant to the termination and renewal of the franchise.
To understand the full scope of legal obligations and rights, prospective Fat Shack franchisees should carefully review the State Addenda to the Franchise Disclosure Document, which is included as Attachment L. This addendum outlines any state-specific regulations that may affect the franchise relationship. Franchisees should also consult with a legal professional to ensure they are fully aware of their rights and obligations under both Colorado law and the laws of their state.