Under what condition will laws regulating the sale of franchises or governing the relationship between franchisor and franchisee apply to the Zoomin Groomin agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement is effective upon its acceptance in Virginia by our authorized officer. Except as to claims governed by federal law, Virginia law governs all Claims that in any way relate to or arise out of this Agreement or any of the dealings of the Parties. However, no laws regulating the sale of franchises or governing the relationship between franchisor and franchisee will apply unless the jurisdictional requirements of such laws are met independently of this paragraph.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, the laws regulating the sale of franchises or governing the relationship between franchisor and franchisee will only apply if the jurisdictional requirements of such laws are met independently of the governing law paragraph in the franchise agreement. This means that simply including a clause stating Virginia law governs the agreement does not automatically exclude the applicability of other states' franchise laws if those states have a sufficient connection to the franchise sale or the franchisee's business operations.
For a prospective Zoomin Groomin franchisee, this is an important consideration because franchise laws vary significantly from state to state. Some states have extensive franchise registration and disclosure requirements, while others do not. Similarly, some states have laws that provide specific protections to franchisees in their relationships with franchisors, such as rights regarding termination, renewal, and transfer of the franchise.
Therefore, even though the Zoomin Groomin franchise agreement specifies that Virginia law governs the agreement, a franchisee may still be able to invoke the protections of their own state's franchise laws if there are sufficient jurisdictional grounds to do so. This could be the case, for example, if the franchisee resides in a state with franchise laws, the franchise is operated in that state, or the franchise agreement was negotiated or signed in that state. Franchisees should consult with an experienced franchise attorney to determine which laws apply to their specific situation and to understand their rights and obligations under both the franchise agreement and applicable state and federal laws.