What specific violations are covered by Section 51-19-12 of the N.D.C.C. regarding Bang Cookies franchises?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
n a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota."
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- Article 16 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota Franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."
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- Articles 6 of the Franchise Agreement are hereby amended by the addition of the following language: "Covenants not to compete such as those mentioned above are generally considered unenforceable in 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: "Covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota Franchisees, North Dakota law shall apply."
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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.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document (FDD) for Bang Cookies includes amendments specific to North Dakota, referencing North Dakota Century Code Chapter 51-19. However, it does not explicitly detail the violations covered under Section 51-19-12 of the North Dakota Century Code (N.D.C.C.). Instead, it mentions several provisions that would not be enforceable for Bang Cookies franchisees in North Dakota due to conflicts with the North Dakota Franchise Investment Law.
Specifically, the FDD states that provisions requiring a franchisee to consent to a waiver of trial by jury or to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law. Additionally, any provision in the Franchise Agreement requiring that the agreement be construed according to the laws of a state other than North Dakota, or any provision requiring a franchisee to waive their right to a jury trial, are considered unfair, unjust, or inequitable under Section 51-19-09 of the N.D.C.C.
While the FDD refers to Section 51-19-09, it does not provide specific details regarding Section 51-19-12. A prospective Bang Cookies franchisee in North Dakota should consult the actual text of the North Dakota Franchise Investment Law, specifically Section 51-19-12, and seek legal counsel to fully understand their rights and obligations under that section. They should also ask Bang Cookies for clarification on how the franchise agreement complies with all sections of the North Dakota Franchise Investment Law.