In the Monicals Pizza Development Agreement, what law governs dispute resolution?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
PMENT AGREEMENT
FOR THE STATE OF CALIFORNIA
| 1. | Development Agreement for Monical Pizza Corporation is amended as follows: | In recognition of the requirements of the California Franchise Investment Law, Cal. Corp. Code | |
|---|---|---|---|
| §§31000-3516 and the California Franchise Relations Act, Cal. Bus. And Prof. Code §§20000-20043, the Area | |||
| and non-renewal. | Section 8 of the Area Development Agreement contains provisions concerning termination If these provisions are inconsistent with California Business and Professions Code Sections 2000 through 20043, California law will control. | ||
| | Section 9.4 of the Area Development Agreement contains a covenant not to compete that | ||
| covenant may not be enforceable under California law. | extends beyond the expiration or termination of the Area Development Agreement; this | ||
| | The Area Development Agreement may require litigation to be conducted in a court located | ||
| action arising under California law. | outside of the State of California. This provision might not be enforceable for any cause of | ||
| | The Area Development Agreement requires application of the laws of a state other than | ||
| California. This provision might not be enforceable under California law. | |||
| Agreement restricting venue to a forum outside of the State of California. | Section 13.7 of the Area Development Agreement requires binding arbitration. arbitration shall occur at the forum indicated in Section 13.7. Prospective developers are encouraged to consult legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of the Area Development | The | |
| 2. | To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of | ||
| said Area Development Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern. | |||
| understands and consents to be bound by all of its terms. |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the governing law for dispute resolution depends on the specific agreement and location of the franchisee. For developers in California, the California Franchise Investment Law and the California Franchise Relations Act may supersede conflicting terms in the Area Development Agreement, particularly concerning termination and non-renewal. The FDD indicates that if provisions in Section 8 of the Area Development Agreement are inconsistent with California Business and Professions Code Sections 2000 through 20043, California law will take precedence. Additionally, the agreement may not be enforceable for any cause of action arising under California law if it requires litigation to be conducted in a court outside of California or requires the application of laws from a state other than California.
For developers in Wisconsin, the Wisconsin Fair Dealership Law supersedes any conflicting terms of the Area Development Agreement. The FDD specifies that each provision of the addendum related to this is effective only to the extent that the jurisdictional requirements of Wisconsin law are met independently of the addendum.
For developers in New York, the Area Development Agreement is amended to comply with New York's General Business Law, Article 33, §§680 through 695. No provision in the Area Development Agreement shall be construed as requiring the developer to waive any right conferred upon them by the provisions of Article 33 of the General Business Law of the State of New York, and the developer may terminate the Area Development Agreement on any grounds available by law.