What law governs the Nontraditional License Agreement for Jack In The Box?

According to the 2025 Jack In The Box Franchise Disclosure Document, the Nontraditional License Agreement is governed by California law. Specifically, Section 18.B of the agreement states that California law controls the agreement, subject to applicable state law. This means that the interpretation and enforcement of the Nontraditional License Agreement will primarily be based on California's legal principles.

Furthermore, any legal action between the franchisee and Jack In The Box must be initiated within two years of the event that led to the action, unless a shorter period is required by law. Additionally, the forum for any legal disputes will be state courts located in San Diego, California, or federal courts in the Southern District of California, subject to applicable state law. Both the franchisee and Jack In The Box waive their right to a jury trial in any action brought against each other.

This choice of law and forum has significant implications for prospective franchisees. It means that franchisees, regardless of where their Jack In The Box location is, may need to familiarize themselves with California law. They may also need to travel to San Diego for any court proceedings. The two-year statute of limitations could also impact a franchisee's ability to pursue legal action if they delay in addressing a potential issue.