What is the subject of the section that replaces section 24.4 in the Floyds 99 Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider to the Franchise Agreement by and between Floyd's 99 Franchising, LLC and Franchisee is dated, 20 |
|---|
| 1. |
| Section 24.4 is deleted in its entirety and the following is substituted in its place: |
| 24.4 |
| 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 |
| seq.), or other federal law, Illinois law governs this Agreement. |
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, for franchisees in Illinois, Section 24.4 of the standard franchise agreement, is replaced with a section regarding "Governing Law/Consent to Venue and Jurisdiction." This specifies that Illinois law governs the agreement, except where federal trademark law (the Lanham Act) or other federal laws apply. This means that legal disputes will generally be interpreted under Illinois law and legal proceedings would likely occur in Illinois.
This is important for prospective Floyds 99 franchisees in Illinois because it clarifies which state's laws will dictate the interpretation and enforcement of the franchise agreement. It also specifies that disputes will be resolved in Illinois courts. This could impact the cost and convenience of resolving any legal issues that may arise during the franchise term.
It is fairly standard for franchise agreements to include a governing law and venue provision. Franchisees should be aware of which state's laws govern their agreement and where they may be required to litigate any disputes with the franchisor. This information helps franchisees understand their rights and obligations under the agreement and plan for potential legal challenges.