What is the governing law for the Jersey Mikes Area Development Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS AGREEMENT TAKES EFFECT UPON ITS ACCEPTANCE AND EXECUTION BY FRANCHISOR IN NEW JERSEY, AND, EXCEPT FOR ITS LAWS RELATING TO CONFLICTS OF LAWS, AND, IF THE DESIGNATED TERRITORY IS LOCATED OUTSIDE NEW JERSEY, EXCEPT FOR THE NEW JERSEY FRANCHISE PRACTICES ACT (N.J.
STATS.
ANN.
SEC. 56: 10-1 ET SEQ.).
THE P ARTIES ALSO ANTIC IPATE THAT THE PER FORMANCE OF CERTAIN OF DEVELOPER'S OBLIGATIONS ARISING UNDER THIS AGREEMENT, INCLUDING THE PAYMENT OF CERTAIN MONIES DUE FRANCHISOR, WILL OCCUR IN MONMOUTH COUNTY, NEW JERSEY.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the Area Development Agreement is governed by the laws of New Jersey. However, there are a couple of exceptions to this rule. First, the laws relating to conflicts of laws are excluded. Second, if the designated territory is located outside of New Jersey, the New Jersey Franchise Practices Act (N.J. STATS. ANN. SEC. 56: 10-1 ET SEQ.) is also excluded.
This means that if a dispute arises regarding the Area Development Agreement, a court would generally apply New Jersey law, unless the conflict of laws principles require the application of another jurisdiction's laws. The exclusion of the New Jersey Franchise Practices Act for territories outside New Jersey is also standard, as that Act is specifically designed to protect franchisees operating within the state.
Furthermore, the FDD states that the parties anticipate that the performance of certain obligations, including the payment of monies due to Jersey Mike's, will occur in Monmouth County, New Jersey. This detail reinforces the importance of New Jersey law in the agreement and suggests that legal proceedings might occur in Monmouth County.