What state's laws govern the interpretation of the Golden Corral agreement?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 FDD, the New York General Business Law governs any claim arising under that law. However, this is only if the Franchise Agreement and/or the relationship between the franchisee and Golden Corral satisfy all of the jurisdictional requirements of the New York General Business Law, without considering this amendment.
The FDD also includes amendments specific to California, stating that the addendum relates to franchises sold in California and is intended to comply with California statutes and regulations. Similarly, there's a Maryland amendment in recognition of the requirements of the Maryland Franchise Registration and Disclosure Law. Additionally, there is a North Dakota Amendment to the Franchise Agreement and Area Development Agreement, which will only be effective if the agreement and the relationship between the franchisee and Golden Corral satisfy the jurisdictional requirements of the North Dakota Franchise Investment Law.
These state-specific amendments suggest that while certain aspects of the agreement might be governed by New York law under specific conditions, the laws of the state where the franchise is sold (e.g., California, Maryland, or North Dakota) will also play a significant role, especially concerning compliance with local franchise regulations and franchisee protection laws. Prospective franchisees should carefully review the specific state addenda applicable to their location and understand how these provisions interact with the general terms of the franchise agreement.