Which state's laws govern the Fly Fitness agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
This Agreement is made in and shall be substantially performed in the State of Nebraska.
Any claims, controversies, disputes, or actions arising out of this Agreement shall be governed, enforced and interpreted pursuant to the laws of the State of Nebraska.
Developer and its Principals, except where specifically prohibited by law, hereby irrevocably submit themselves to the sole and exclusive jurisdiction of the state and federal courts in the Nebraska.
Developer and its Principals, hereby waive all questions of personal jurisdiction for the purpose of carrying out this provision.
- 10.6 Mutual Benefit.
Developer and Franchisor acknowledge that the parties' agreement regarding applicable state law and forum set forth in Section 10.5 provide each of the parties with the mutual benefit of uniform interpretation of this Agreement and any dispute arising hereunder.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the laws of Nebraska govern the franchise agreement. Specifically, the agreement is made in and shall be substantially performed in the State of Nebraska, and any legal issues will be interpreted under Nebraska law. This means that Nebraska law will be used to interpret the agreement and resolve any disputes that may arise.
Furthermore, both Fly Fitness and the franchisee agree to submit to the jurisdiction of the state and federal courts in Nebraska for any claims or disputes related to the franchise agreement. This indicates that any legal proceedings would likely take place in Nebraska, which could involve travel and associated costs for a franchisee located outside of Nebraska. The franchisee also waives any objections to personal jurisdiction in Nebraska, reinforcing the agreement to resolve disputes within that state's legal system.
Fly Fitness emphasizes that this agreement on governing law and venue provides a mutual benefit, ensuring uniform interpretation of the agreement. This is intended to create a predictable and consistent legal environment for both parties. Prospective franchisees should be aware of this clause and consider the implications of having disputes resolved in Nebraska, regardless of their location.