What is the effect of the jurisdiction clause in the Golden Corral franchise agreement?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Governing Law. Section 23.1 is amended by adding the following:
Notwithstanding the foregoing, the New York General Business Law shall govern any claim arising under that law.
- This Amendment will have effect only if the Franchise Agreement and/or the relationship between you and Golden Corral satisfy all of the jurisdictional requirements of the New York General Business Law, without considering this Amendment. Except as expressly modified by this Amendment, the Franchise Agreement remains unmodified and in full force and effect.
Source: Item 23 — RECEIPTS (FDD pages 85–304)
What This Means (2025 FDD)
According to the 2025 Golden Corral Franchise Disclosure Document, the franchise agreement is subject to specific jurisdictional requirements, particularly concerning state franchise laws. Several amendments address how these laws affect the agreement in states like California, Maryland, Illinois, and North Dakota. These amendments ensure that certain provisions do not waive franchisees' rights under applicable state franchise laws, including claims related to fraud.
For franchisees in New York, the New York General Business Law governs any claims arising under that law, regardless of the standard governing law provision in the franchise agreement. The amendments stipulate that their effect is contingent upon the franchise agreement and the relationship between the franchisee and Golden Corral meeting the jurisdictional requirements of the relevant state laws without considering the amendment itself. This ensures that the state's franchise laws apply independently.
These jurisdictional clauses and amendments protect franchisees by preventing them from unknowingly waiving their rights under state laws. They also ensure that franchisees can pursue claims, such as those related to fraud, within the legal framework of their state. This can be particularly important in states with strong franchise protection laws, as it allows franchisees to operate under the legal protections afforded by their local jurisdiction. Golden Corral franchisees should be aware of the specific amendments and how they apply to their individual circumstances, especially if they are operating in a state with specific franchise laws mentioned in the FDD.