Which state's law governs the validity and interpretation of the Mr. Sandless release agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Pennsylvania law shall govern the validity and interpretation of this Agreement, as well as the performance due thereunder. This Agreement is binding upon and inures to the benefit of the respective assigns, successors, heirs and legal representatives of the parties hereto.
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- In the event that any action is filed to interpret any provision of this Agreement, or to enforce any of the terms thereof, the prevailing party shall be entitled to its reasonable attorneys' fees and costs incurred therein, and said action must be filed in the Commonwealth of Pennsylvania.
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- This Agreement may be signed in counterparts, each of which shall be binding against the party executing it and considered as the original.
[Washington Residents: the general release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.]
Source: Item 23 — RECEIPTS (FDD pages 42–167)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the validity and interpretation of the release agreement, as well as the performance due under it, is governed by Pennsylvania law. Additionally, any legal action filed to interpret or enforce the agreement's provisions must be filed in the Commonwealth of Pennsylvania. This means that Pennsylvania courts and legal principles will be used to resolve any disputes related to the agreement.
This clause is important for prospective Mr. Sandless franchisees because it establishes the legal framework that will govern the release agreement. Franchisees should be aware that if they sign the release, they are agreeing to have any disputes resolved under Pennsylvania law in Pennsylvania courts, regardless of where their franchise is located. This could involve additional costs and inconvenience if a franchisee lives outside of Pennsylvania and needs to travel there for legal proceedings.
It is also important to note that Washington residents have specific protections under the Washington Franchise Investment Protection Act, which means the general release does not apply to claims arising under that Act. Therefore, prospective franchisees in Washington should be aware of their rights under Washington law, which may differ from Pennsylvania law. Franchisees should consult with a legal professional to fully understand the implications of the release agreement and the applicable state laws.