What sections of The Standardx agreements specify the choice of law?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| w. Choice of law | 14.2 of Franchise Agreement; 8C of Confidentiality Agreement; 11 of Central Services Agreement | Except for Federal Arbitration Act and other federal law, and subject to state law, Illinois law applies. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the choice of law is specified in multiple agreements. Specifically, Section 14.2 of the Franchise Agreement, Section 8C of the Confidentiality Agreement, and Section 11 of the Central Services Agreement all contain provisions related to the choice of law.
These sections are important because they determine which state's laws will govern the interpretation and enforcement of these agreements. According to the FDD, Illinois law applies, except for the Federal Arbitration Act and other federal law, and subject to state law. This means that if there is a dispute, the laws of Illinois will generally be used to resolve it, unless federal law or the laws of the franchisee's state dictate otherwise.
For a prospective The Standardx franchisee, this means that they may need to become familiar with Illinois law, or consult with an attorney who is knowledgeable in Illinois law, to fully understand their rights and obligations under the franchise agreement, the confidentiality agreement, and the central services agreement. It is also important to note that the choice of law provision is subject to state law, which means that in some cases, the laws of the franchisee's state may override the choice of Illinois law.