Under what state's laws is the Floyds 99 agreement governed and construed?
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.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, the franchise agreement is generally governed and construed under the laws of Colorado. This means that if there are disputes regarding the interpretation or enforcement of the agreement, Colorado law will typically apply. Additionally, both Floyds 99 and the franchisee consent to the jurisdiction and venue of the state and federal courts of Colorado for resolving such disputes. This simplifies legal proceedings by establishing a specific location for any lawsuits or legal actions.
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 the laws of the franchisee's state will govern the agreement. This provision protects franchisees from being forced to litigate in a distant or inconvenient forum if their state's laws prevent it. This ensures that franchisees are not unduly burdened by the choice of law and venue provisions in the franchise agreement.
Several state addenda included in the FDD modify this general rule. For example, the addendum for North Dakota states that any provision requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to consent to the application of laws of a state other than North Dakota may be unenforceable under North Dakota law. Similarly, the addendum for Rhode Island specifies that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. The Minnesota addendum states that Minnesota law prohibits Floyds 99 from requiring litigation to be conducted outside Minnesota.