Can Angry Chickz require North Dakota franchisees to consent to a limitation of claims?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- I. Limitation of Claims: Requiring that North Dakota franchisees to consent to a limitation of claims. The statute of limitations under North Dakota law applies.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, the North Dakota Securities Commissioner deems it unfair, unjust, or inequitable for Angry Chickz to require North Dakota franchisees to consent to a limitation of claims. The FDD specifies that the statute of limitations under North Dakota law applies in these instances. This protection is in place due to North Dakota Franchise Investment Law.
This means that Angry Chickz cannot enforce a clause in its franchise agreement that would limit the time a franchisee has to bring a claim against them. This addendum ensures that North Dakota franchisees are entitled to the full statutory period allowed under North Dakota law to pursue any legal claims they may have against the franchisor.
This provision is included as an addendum to the franchise agreement specifically for franchisees in North Dakota, highlighting the state's commitment to protecting franchisees' rights. Prospective Angry Chickz franchisees in North Dakota should be aware of this protection, as it ensures they have adequate time to address any potential issues that may arise during the franchise term.