If a provision allowing 1-800-GOT-JUNK? to recover liquidated damages or termination payments is unenforceable in North Dakota, what alternative remedy is available to 1-800-GOT-JUNK??

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, if a provision allowing them to recover liquidated damages or termination payments is unenforceable in North Dakota, 1-800-GOT-JUNK? is permitted to recover contractual damages caused by any breach of contract or default by the franchisee. This applies if the original provision is deemed unenforceable by an arbitrator or court, or if 1-800-GOT-JUNK? waives that provision.

This modification is outlined in the North Dakota addendum to the franchise agreement, acknowledging specific state laws that may restrict the enforceability of certain clauses. This ensures that while 1-800-GOT-JUNK? cannot collect liquidated damages or termination payments if those provisions are deemed unenforceable, they still have recourse to recover actual contractual damages resulting from a franchisee's breach or default.

For a prospective franchisee in North Dakota, this means that while they may not be subject to predetermined liquidated damages or termination payments, they are still liable for actual financial losses incurred by 1-800-GOT-JUNK? due to their non-compliance with the franchise agreement. It is important for franchisees to understand their obligations under the contract to avoid potential liability for contractual damages. This also highlights the importance of carefully reviewing the franchise agreement and any state-specific addenda with legal counsel to fully understand the implications of these provisions.