Is the All States M.E.D. Franchisee Disclosure Questionnaire used for franchise sales to residents of North Dakota?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
NORTH DAKOTA ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the North Dakota franchise laws, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
Restrictive Covenants: To the extent that covenants not to compete apply to periods after the term of the franchise agreement, they are generally unenforceable under North Dakota law.
Applicable Laws: North Dakota law will govern the franchise agreement.
Jurisdiction and Venue: The provisions concerning choice of law and jurisdiction and venue 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."
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, a North Dakota Addendum modifies the standard franchise agreement for franchisees in North Dakota. Specifically, it states that "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."
This addendum ensures that franchisees in North Dakota do not inadvertently waive their rights under North Dakota franchise law through any statements, questionnaires, or acknowledgments made during the franchise commencement. This includes protection against waiving claims related to fraud in the inducement or disclaiming reliance on franchisor statements.
This modification is important for prospective All States M.E.D. franchisees in North Dakota as it reinforces their legal rights and protections under state franchise laws, preventing potential waivers or disclaimers that could otherwise limit their ability to pursue claims against the franchisor. The addendum essentially strengthens the franchisee's position by ensuring full access to legal recourse if needed, regardless of any standard documentation signed during the franchise onboarding process.