Are provisions requiring a Bang Cookies franchisee to consent to a waiver of exemplary and punitive damages enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of North Dakota Law are met independently without reference to this amendment.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, provisions requiring a franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law. This protection applies specifically to Bang Cookies franchisees who are either residents of North Dakota or will have their Bang Cookies shop located in North Dakota.
This means that Bang Cookies cannot require North Dakota franchisees to waive their right to seek exemplary or punitive damages in disputes. Exemplary or punitive damages are damages awarded to punish a defendant for particularly egregious behavior, beyond compensating the plaintiff for actual losses. This ensures that North Dakota franchisees retain the ability to pursue such damages if circumstances warrant, despite any conflicting language in the standard franchise agreement.
The North Dakota Addendum to the Franchise Agreement explicitly states that this provision is not enforceable, overriding any contradictory terms in the main agreement. This amendment is designed to protect the rights of franchisees under North Dakota law, ensuring they are not unfairly disadvantaged by standard contract terms that might otherwise apply. Each provision of this amendment is effective only to the extent that the jurisdictional requirements of North Dakota Law are met independently without reference to this amendment.
Prospective Bang Cookies franchisees in North Dakota should carefully review the North Dakota Addendum to fully understand their rights and protections under state law. This includes understanding which specific provisions of the Franchise Agreement are modified or rendered unenforceable by North Dakota law. Franchisees should consult with a legal professional to ensure they fully understand the implications of these amendments and their rights under the franchise agreement.