Where can I find Section 9, regarding punitive damages, referenced in the Annex Brands Franchise Agreement?

According to the 2025 FDD, Section 9 of Attachment 8 of the Annex Brands Franchise Agreement addresses punitive damages. The North Dakota Securities Commissioner has determined that requiring a franchisee to consent to a waiver of punitive damages is unfair, unjust, and inequitable under Section 51-19-09 of the North Dakota Franchise Investment Law. As a result, any such waiver is unenforceable in North Dakota. This information is found within Item 22, which covers contract-related details.

This means that while the Annex Brands Franchise Agreement may contain a clause about waiving punitive damages, that clause cannot be enforced against franchisees in North Dakota due to state law. Punitive damages are typically awarded to punish a defendant for egregious misconduct, and this provision ensures that franchisees in North Dakota retain the right to seek such damages if warranted.

For prospective franchisees, especially those in North Dakota, this information is crucial. It clarifies that certain clauses in the franchise agreement may be superseded by state laws designed to protect franchisees. It is advisable to consult with a legal professional to fully understand the implications of these clauses and riders, especially concerning your specific state.