FRANCHISE: Does New Jersey uphold choice-of-law provisions in the franchise context?

Recently, the District Court of New Jersey refused to enforce a choice-of-law provision designating Illinois law in a franchise lawsuit.   Lentini v. McDonalds, 2019 WL 4746420 (D.N.J. Sept. 30, 2019).r New Jersey’s courts will honor a choice-of-law provision unless (a) the chosen state has no substantial relationship to the parties or the transaction and there is no other reasonable basis for the parties’ choice, or (b) application of the law of the chosen state would be contrary to a fundamental policy of a state which has a materially greater interest than the chosen state in the determination of the particular issue.   The New Jersey Supreme Court has made clear that the state has a strong policy in favor of protecting its franchisees.

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