Under what state's laws will the Jersey Mikes Franchise Agreement be interpreted and construed?

According to Jersey Mikes' 2025 Franchise Disclosure Document, the Franchise Agreement will be interpreted and construed under the laws of New Jersey. However, there are a couple of exceptions to this rule. First, the laws relating to conflicts of laws will be 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.) will also be excluded.

This means that if a dispute arises between Jersey Mikes and a franchisee, the laws of New Jersey will generally govern the interpretation of the Franchise Agreement. However, if there is a conflict of laws issue, the court will need to determine which state's laws should apply to that particular issue. Additionally, franchisees operating outside of New Jersey will not be protected by the New Jersey Franchise Practices Act, which provides certain protections to franchisees in that state.

Furthermore, the FDD states that the parties anticipate that the performance of certain obligations, including the payment of monies due to Jersey Mikes, will occur in Monmouth County, New Jersey. This suggests that New Jersey law is intended to have a significant connection to the franchise relationship, regardless of where the franchisee is located. Prospective franchisees should be aware of these provisions and consider the implications of New Jersey law governing their agreement, especially if they are located outside of New Jersey.