What statute of limitations applies to Bang Cookies franchisees in North Dakota?
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 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's 2024 Franchise Disclosure Document, for franchisees operating in North Dakota, the statute of limitations will be determined by North Dakota law. This amendment overrides any provision in the franchise agreement that attempts to limit claims to within one year, which Bang Cookies has determined to be unfair, unjust, and inequitable under Section 51-19-09 of the North Dakota Franchise Investment Law.
This means that North Dakota franchisees are entitled to the full protection of the statute of limitations as defined by North Dakota law, which may be longer than one year. The specific length of the statute of limitations will depend on the nature of the claim. Franchisees should consult with a legal professional to determine the applicable statute of limitations for their specific situation.
This provision is beneficial for prospective Bang Cookies franchisees in North Dakota because it ensures they have adequate time to pursue legal claims against the franchisor if necessary. It prevents Bang Cookies from enforcing a shorter limitation period that could unfairly restrict a franchisee's legal rights. This aligns with the intent of the North Dakota Franchise Investment Law to protect franchisees and ensure fair franchising practices.