Which state's law governs the franchise agreements for Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Both parties waive any objection to the jurisdiction of these courts or to venue in the state and federal courts of Colorado.
Notwithstanding the foregoing, if the laws of the state where the Associate resides prohibit the aforesaid designation of jurisdiction and venue, then such other state's laws shall control.
Illinois law governs the agreements.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchise agreements are generally governed by Colorado law. However, this is subject to certain exceptions and stipulations based on the franchisee's state of residence. Specifically, if the laws of the state where the franchisee resides prohibit the designation of jurisdiction and venue in Colorado, then that state's laws will govern.
For franchisees in Illinois, Illinois law governs the agreements. Additionally, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although the agreement may provide for arbitration to take place outside of Illinois. Similarly, in Rhode Island, a provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws is void with respect to a claim enforceable under the Rhode Island Franchise Investment Act.
These stipulations are important for prospective franchisees as they clarify which state's laws will protect their rights and govern the franchise agreement. Franchisees should be aware of the specific addenda and riders applicable to their state to understand their rights and obligations fully. This ensures that franchisees are not subjected to unfair or unenforceable terms, particularly regarding jurisdiction, venue, and waivers of rights under state franchise laws.