What governing law applies to the Floyds 99 Development Agreement, and what is the exception?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Developer is dated, 20 | This Rider to the Development Agreement by and between Floyd's 99 Franchising, LLC and |
|---|---|
| 1. | Section 13.4 is deleted in its entirety and the following is substituted in its place: |
| 13.4 seq.), or other federal law, Illinois law governs this Agreement. | Governing Law/Consent to Venue and Jurisdiction. Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et |
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Development Agreement is generally governed by Illinois law. Specifically, Section 13.4 of the agreement states that Illinois law applies, except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et seq.) or other federal law.
This means that most legal disputes or interpretations of the Development Agreement will be subject to Illinois state law. However, any issues specifically related to trademarks fall under federal law, particularly the Lanham Act. This is a common arrangement in franchising, as trademark protection is a federal matter, while contract law is generally governed at the state level.
For a prospective Floyds 99 developer, this clause ensures clarity regarding which laws will govern the agreement. It is important to understand both Illinois state law and federal trademark law to fully grasp the legal implications of the Development Agreement. Franchisees should consult with legal counsel to ensure they understand their rights and obligations under both sets of laws.