Which state's laws govern the Stretch Zone Franchise Agreement, and under what circumstances?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Governing Law. This Agreement is governed by, and construed in accordance with, the laws of the state in which the DMA is located, which law shall govern upon a conflict of laws.
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Franchise Agreement is governed by the laws of the state in which the Designated Marketing Area (DMA) is located. This governing law applies specifically in situations where there is a conflict of laws.
For a prospective Stretch Zone franchisee, this means that the legal framework for interpreting and enforcing the Franchise Agreement will vary depending on the state where their franchise is located. In the event of a legal dispute, the laws of the franchisee's DMA state will be used to resolve the conflict, providing a degree of local legal relevance.
This approach is fairly common in franchising, as it tailors the legal aspects of the agreement to the specific jurisdiction where the franchise operates. Franchisees should be aware of the laws in their DMA state that may affect their rights and obligations under the Franchise Agreement. Consulting with a legal professional familiar with franchise law in their state is advisable to fully understand the implications.