What is the role of the North Dakota Securities Department regarding Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
oice of law**": The foregoing choice of law should not be
| | Location | Franchisee | | Address | Phone | |---|---|---|---|---|---| | Mason, OH | | Brent Hill* | 6209 Snider Road, Suite B, Mason, OH 45040 | (513) 466-8466 | | | Loveland, OH | | Brent Hill | 201 W. Loveland Avenue, Loveland, OH 45140 | (513) 239-5467 | | | Fort Mitchell, KY | | Brittan and Kelly Grubb | 2510 Dixie Highway, Fort Mitchell, KY 41017 | (859) 307-5110 | | | Louisville, KY | | Nick and Kelly Langford** | 4149 Shelbyville Road, Louisville, KY 40207 | (502) 530-5452 | |
NORTH DAKOTA ADDENDUM TO DISCLOSURE DOCUMENT
In the State of North Dakota only, this Disclosure Document is amended as follows:
THE SECURITIES COMMISSIONER HAS HELD THE FOLLOWING TO BE UNFAIR, UNJUST OR INEQUITABLE TO NORTH DAKOTA FRANCHISEES (NDCC SECTION 51-19-09):
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- Restrictive Covenants: Franchise disclosure documents that disclose the existence of covenants restricting competition contrary to NDCC Section 9-08-06, without further disclosing that such covenants will be subject to the statute.
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- Situs of Arbitration Proceedings: Franchise agreements providing that the parties must agree to the arbitration of disputes at a location that is remote from the site of the franchisee's business.
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- Restrictions on Forum: Requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota.
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- Liquidated Damages and Termination Penalties: Requiring North Dakota franchisees to consent to liquidated damages or termination penalties.
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- Applicable Laws: Franchise agreements that specify that they are to be governed by the laws of a state other than North Dakota.
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- Waiver of Trial by Jury: Requiring North Dakota Franchises to consent to the waiver of a trial by jury.
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- Waiver of Exemplary and Punitive Damages: Requiring North Dakota Franchisees to consent to a waiver of exemplary and punitive damage.
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- General Release: Franchise Agreements that require the franchisee to sign a general release upon renewal of the franchise agreement.
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- Limitation of Claims: Franchise Agreements that require the franchisee to consent to a limitation of claims. The statute of limitations under North Dakota law applies.
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- Enforcement of Agreement: Franchise Agreements that require the franchisee to pay all costs and expenses incurred by the franchisor in enforcing the agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the North Dakota Securities Department is the state administrator in North Dakota. The address for the North Dakota Securities Department is 600 East Boulevard Ave., State Capital Fifth Floor, Dept. 414, Bismarck, ND 58505-0510, and their phone number is (701) 328-4712.
In North Dakota, the Securities Commissioner has determined certain franchise agreement terms to be unfair, unjust, or inequitable to franchisees, according to NDCC Section 51-19-09. These include restrictive covenants that don't disclose their subjection to NDCC Section 9-08-06, requiring arbitration proceedings in remote locations, and compelling North Dakota franchisees to consent to the jurisdiction of courts outside the state.
Additional points deemed unfair are requiring franchisees to consent to liquidated damages or termination penalties, specifying that franchise agreements are governed by laws other than North Dakota's, and mandating the waiver of a trial by jury or exemplary and punitive damages. The Securities Commissioner also considers it unfair to require franchisees to sign a general release upon renewal, consent to a limitation of claims (as the statute of limitations under North Dakota law applies), or pay all costs and expenses incurred by Better Blend in enforcing the agreement (instead, the prevailing party is entitled to recover all costs and expenses, including attorney's fees).
Prospective Better Blend franchisees in North Dakota should be aware of these specific protections and ensure that their franchise agreement complies with these requirements to avoid potentially unfair or inequitable terms. They should consult with a legal professional to review the franchise agreement and ensure their rights are protected under North Dakota law.