Does the Franchise Agreement for All States M.E.D. include additional language beyond the standard agreement?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
NORTH DAKOTA ADDENDUM TO THE FRANCHISE AGREEMENT
If any of the terms of the Franchise Agreement are inconsistent with the terms below, the terms below control.
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- You are not required to sign a general release upon renewal of the franchise agreement.
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- The franchise agreement is amended to also provide as follows:
"Covenants not to compete are generally considered unenforceable in the State of North Dakota."
- The provisions concerning choice of law, jurisdiction and venue, jury waiver, and waiver of punitive damages are hereby deleted and in their place is substituted the following language:
"You agree to bring any claim against us, including our present and former employees, agents, and affiliates, which in any way relates to or arises out of this Agreement, or any of the dealings of the parties hereto, solely in arbitration before the American Arbitration Association."
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- The provision concerning limitation of actions is modified to provide that the statute of limitations under North Dakota Law will apply.
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- The provision concerning mediation and arbitration are modified to also provide that the site of mediation and arbitration shall be agreeable to all parties and may not be remote from your place of business.
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- North Dakota law governs any cause of action arising out of the franchise agreement.
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- Any requirement in the Franchise Agreement that requires you to pay all costs and expenses incurred by us in enforcing the agreement is void. Instead, the prevailing party in any enforcement action is entitled to recover all costs and expenses including attorney's fees.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the franchise agreement may include addenda that modify the standard agreement based on specific state laws. For example, there is a North Dakota Addendum to the Franchise Agreement.
The North Dakota addendum outlines several modifications to the standard franchise agreement. These modifications include stipulations that you are not required to sign a general release upon renewal of the franchise agreement, and covenants not to compete are generally considered unenforceable in the State of North Dakota.
Additionally, the addendum replaces the standard agreement's provisions concerning choice of law, jurisdiction and venue, jury waiver, and waiver of punitive damages with a requirement for arbitration before the American Arbitration Association. It also modifies the limitation of actions to align with North Dakota law, and ensures that the site of mediation and arbitration is agreeable to all parties and not remote from the franchisee's place of business. North Dakota law governs any cause of action arising out of the franchise agreement. The addendum also voids any requirement for the franchisee to pay all costs and expenses incurred by All States M.E.D. in enforcing the agreement, instead allowing the prevailing party to recover all costs and expenses, including attorney's fees. Finally, it stipulates that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by the franchisor.