What state's laws govern the Floyds 99 agreement?

According to the 2025 Floyds 99 FDD, the franchise agreement is generally governed by Colorado law. The FDD states that both parties to a franchise agreement consent to the jurisdiction and venue of Colorado's state and federal courts. This means that if there is a dispute, it would typically be resolved in Colorado courts, applying Colorado law.

However, there is an important exception to this rule. 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 the agreement. This protects franchisees from having to litigate in a distant or inconvenient forum if their home state has laws preventing it.

Several state addenda included in the FDD modify this general rule. For example, the Rhode Island addendum specifically states that any 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 claims enforceable under the Rhode Island Franchise Investment Act. Similarly, the Minnesota addendum prohibits Floyds 99 from requiring litigation to be conducted outside of Minnesota. The New York addendum states that the choice of law shall not be considered a waiver of any right conferred upon the franchisee by the provisions of Article 33 of the New York State General Business Law. These addenda ensure that franchisees' rights under their local state laws are protected, regardless of what the main franchise agreement says.

Therefore, while the Floyds 99 franchise agreement is generally governed by Colorado law, prospective franchisees need to carefully review the state-specific addenda to understand how their local state laws may modify or supersede this provision. This is a common practice in franchising to ensure compliance with varying state franchise laws.