What section of the N.D.C.C. limits the civil liability of Bang Cookies to a franchisee?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Bang Cookies Shop outlet will be located within the State of North Dakota.
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
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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."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply."
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, several articles of the franchise agreement are amended for North Dakota franchisees due to limitations imposed by the North Dakota Franchise Investment Law. Specifically, Section 51-19-09 of the North Dakota Franchise Investment Law addresses provisions related to franchisee waivers and limitations of claims.
For franchisees in North Dakota, provisions requiring a waiver of trial by jury or exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law. Additionally, any provisions that require a franchisee to consent to a limitation of claims within one year are considered unfair, unjust, and inequitable under Section 51-19-09. Therefore, the statute of limitations under North Dakota law will apply to North Dakota franchisees.
These amendments ensure that Bang Cookies franchisees in North Dakota are not subject to certain restrictive clauses that would otherwise limit their legal rights and protections. This addendum reflects North Dakota's specific legal requirements and provides additional safeguards for franchisees operating within the state.