factual

Does the Beard Papas franchise agreement include a clause regarding a waiver of jury trial?

Beard_Papas Franchise · 2025 FDD

Answer from 2025 FDD Document

NORTH DAKOTA FRANCHISE AGREEMENT AMENDMENT

Amendments to the Beard Papa's Franchise Agreement

In recognition of the North Dakota Franchise Investment Law, Section 51-19, the parties to the attached Muginoho International, Inc. Franchise Agreement (the "Franchise Agreement") agree as follows:

The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Beard Papa's Shop outlet will be located within the State of North Dakota.

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."

Source: Item 23 — RECEIPTS (FDD pages 58–275)

What This Means (2025 FDD)

According to the 2025 Beard Papas Franchise Disclosure Document, the franchise agreement's enforceability regarding a jury trial waiver depends on the franchisee's location. Specifically, the North Dakota Franchise Investment Law stipulates that provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 if the franchisee or the Beard Papas shop is located within North Dakota. This amendment is in place to protect franchisees operating in North Dakota.

Furthermore, the Washington State Franchise Agreement Amendment indicates that provisions that unreasonably restrict or limit rights or remedies under the Washington Franchise Investment Protection Act, such as the right to a jury trial, may not be enforceable. This suggests that while a waiver might exist in the standard agreement, its enforceability is subject to state laws designed to protect franchisees.

For prospective Beard Papas franchisees, this means that the standard franchise agreement might contain a clause requiring a waiver of jury trial. However, depending on the state where the franchise is located, this clause may not be enforceable. Franchisees should consult with legal counsel to understand their rights and the enforceability of specific clauses in their franchise agreement, particularly concerning dispute resolution and legal proceedings.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.