What state's law governs Annex Brands Franchise Agreements in North Dakota?

According to the 2025 FDD, the Annex Brands franchise agreement is governed by North Dakota law for franchisees operating in North Dakota. Specifically, the FDD states that Subpart H in Section 17 of the Franchise Agreement is amended to remove the reference to California law and instead specifies that North Dakota law applies. This means that any legal disputes or interpretations of the franchise agreement for a North Dakota-based Annex Brands franchise will be subject to the laws of North Dakota.

This amendment is part of a larger North Dakota State Rider to the Franchise Agreement, which addresses various aspects of the agreement to ensure compliance with North Dakota's Franchise Investment Law. These modifications cover areas such as refunds of the initial fee, transfer conditions, renewal terms, covenants not to compete, arbitration or litigation venues, statutes of limitations, waivers of trial by jury, releases, and liquidated damages.

For a prospective Annex Brands franchisee in North Dakota, this is a beneficial provision. It ensures that their franchise agreement is interpreted and enforced under the laws of their own state, which may offer greater protection to franchisees compared to California law. It also mandates that any arbitration or litigation must occur in North Dakota or a mutually agreed-upon location, reducing the burden and expense of resolving disputes in a distant jurisdiction.