What state's laws govern the Spray Net franchise agreement?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are revisions to the Franchise Agreement:
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- Governing Law and Jurisdiction. Notwithstanding any provision of this Agreement to the contrary, this Agreement is governed by Illinois law. The parties irrevocably submit to the jurisdiction and venue of the federal and state courts in Illinois, except for matters which the Agreement provides will be resolved by arbitration.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by Illinois law. However, this is subject to certain exceptions. Specifically, the Illinois Addendum to the Franchise Agreement states that notwithstanding any provision to the contrary within the agreement, Illinois law will govern the franchise agreement.
This means that franchisees operating in Illinois will have their franchise agreements interpreted and enforced under Illinois state law, except for matters that the agreement provides will be resolved by arbitration. This ensures that Spray Net franchisees in Illinois have the protections and rights afforded to them under the Illinois Franchise Disclosure Act of 1987.
It is important to note that this governing law provision may not apply to all franchisees, as the FDD includes addenda for other states that may modify this provision. For example, the addenda for Maryland, Minnesota, and North Dakota include specific modifications and stipulations related to franchise law within those states. Therefore, prospective franchisees should carefully review the addendum for their specific state to understand which laws govern their franchise agreement.