What state's law governs the arbitration of Mr. Sandless Franchise Agreements?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| w. | Choice of law | 24.1 | Agreement is governed by the laws of Pennsylvania. (subject to state law) |
The following amends Item 17 and is required to be included within the Disclosure Document and shall be deemed to supersede the language in the Disclosure Document itself:
Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that:
"A provision in a franchise agreement restricting jurisdiction or venue to a forum outside of this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
STATE ADDENDUM REQUIRED BY THE STATE OF INDIANA
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- Under Indiana Code 23-2-2.7-1 (10), jurisdiction and venue must be in Indiana if the franchisee so requests. This amends Article 24 of the Franchise Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the Franchise Agreement is generally governed by the laws of Pennsylvania. However, this is subject to state law, meaning that specific state laws may override this provision in certain circumstances.
For instance, the FDD includes a state addendum for Rhode Island which states that any provision in the franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island, or requiring the application of the laws of another state, is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. Similarly, Indiana law requires that jurisdiction and venue must be in Indiana if the franchisee requests it.
Therefore, while the Mr. Sandless agreement specifies Pennsylvania law, franchisees need to be aware of their own state's franchise laws, which may take precedence over certain aspects of the agreement, particularly concerning dispute resolution, jurisdiction, and choice of law.