Does the North Dakota Addendum modify the Batteries Plus Bulbs Franchise Agreement?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
NORTH DAKOTA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
This Addendum relates to franchises sold in the State of North Dakota and is intended to comply with North Dakota statutes and regulations.
- Item 17. Item 17 of the disclosure document is amended by the addition of the following:
Items 17(c) and (m) require you to sign a release as a condition to renewal or transfer. These provisions may not be enforceable in North Dakota. In addition, the Multiple Unit Franchise Agreement and the Franchise Agreement contain covenants not to compete which extend beyond the termination of the franchise. These provisions may not be enforceable in North Dakota.
NORTH DAKOTA ADDENDUM TO FRANCHISE AGREEMENT
This Addendum relates to franchises sold in North Dakota and is intended to comply with North Dakota statutes and regulations. In consideration of the execution of the Franchise Agreement, Franchisor and Franchisee agree to amend the Franchise Agreement as follows:
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- Covenant Not to Compete. Sections 14(C) and 18(A)(8) of the Franchise Agreement are amended to provide that covenants not to compete upon termination or expiration of the Franchise Agreement may be unenforceable, except in certain circumstances provided by law.
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- Construction. In all other respects, the Franchise Agreement will be construed and enforced with its terms.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–53)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the North Dakota Addendum does modify the Franchise Agreement for franchises sold in North Dakota. The addendum is intended to ensure compliance with North Dakota statutes and regulations.
Specifically, the North Dakota Addendum amends Sections 14(C) and 18(A)(8) of the Franchise Agreement, addressing covenants not to compete upon termination or expiration. It states that these covenants may be unenforceable, except in circumstances provided by law.
Additionally, the addendum addresses Item 17 of the disclosure document, noting that provisions requiring a release as a condition of renewal or transfer may not be enforceable in North Dakota. It also clarifies that covenants not to compete extending beyond the franchise termination may not be enforceable in North Dakota. In all other respects, the Franchise Agreement will be construed and enforced with its terms.