Are there any exceptions to the choice of law provision in the Stretch Zone Area Development Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| v. Choice of forum1 | Section 9.1 | Subject to state law, any informal dispute resolution, |
| mediation or arbitration proceeding must be conducted | ||
| where our principal office is located when the demand is | ||
| requested. Any litigation to enforce the Area | ||
| Development Agreement must be filed in the courts | ||
| where our principal office is located when litigation is | ||
| filed (currently Broward County, Florida). | ||
| w. Choice of law1 | Section 9.1 | Except to the extent governed by the United States |
| Trademark Act of 1946, the United States Copyright Act | ||
| or the United States Arbitration Act, , and subject to | ||
| applicable state law, the Development Agreement is | ||
| interpreted under the laws of Florida. |
Source: Item 19 — ITEM -19 FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 73–76)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Area Development Agreement is generally interpreted under Florida law. However, there are exceptions to this rule. The choice of law provision in Section 9.1 of the Area Development Agreement states that the agreement's interpretation is subject to the United States Trademark Act of 1946, the United States Copyright Act, or the United States Arbitration Act, and applicable state law.
This means that while Florida law typically governs the agreement, federal laws related to trademarks, copyrights, and arbitration take precedence where applicable. Additionally, state laws may also apply, potentially creating further exceptions depending on the specific legal issue.
For a prospective Stretch Zone area developer, this is important because disputes may not always be resolved solely under Florida law. Federal laws and the laws of other states could come into play depending on the nature of the dispute. It would be prudent for a potential franchisee to consult with a legal professional to fully understand the implications of these choice of law provisions and how they might affect their rights and obligations under the Area Development Agreement.