What state's laws govern the Marble Slab Creamery Agreement?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- GOVERNING LAW.
The existence, validity and construction of this Agreement shall be governed in all respects by the substantive laws of the State of California.
With respect to any claims concerning this Agreement, each party agrees: (i) to submit to the exclusive general jurisdiction of the Courts of the State of California or the federal courts that are located in Los Angeles, California; (ii) that any such action or proceeding may be brought in such courts; and (iii) to waive any objection that it may have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, the franchise agreement is generally governed by the laws of California. Specifically, the FDD states that the existence, validity, and construction of the agreement are governed by the substantive laws of California. Any claims concerning the agreement must be submitted to the exclusive jurisdiction of the courts of California, either state or federal courts located in Los Angeles.
However, this general rule may be superseded by addenda applicable to franchisees in specific states. For example, an addendum for Illinois states that "Illinois law, as amended, shall apply to any franchise offered or sold in Illinois, notwithstanding anything to the contrary contained in this Agreement." Similarly, an addendum for Rhode Island notes that the Rhode Island Franchise Investment Act voids any provision restricting jurisdiction or requiring the application of another state's laws. An addendum for North Dakota states that franchise agreements specifying governance by the laws of a state other than North Dakota are considered unfair, unjust, or inequitable.
These addenda highlight that while the main Marble Slab Creamery franchise agreement specifies California law, state-specific franchise laws can override this provision to protect franchisees. Prospective franchisees should carefully review any state-specific addenda to understand their rights and how the franchise agreement is modified in their state. This ensures compliance with local regulations and provides clarity on legal matters specific to their location.