Are there any exceptions to the waiver of punitive damages in controversies related to the Better Blend agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2. Amendments. The Agreement (and any Guaranty Agreement) is amended to comply with the following:
- (1) Restrictive Covenants: Every contract by which Franchisee, any Guarantor, or any other person is restrained from exercising a lawful profession, trade, or business of any kind is subject to NDCC Section 9-08-06.
- (2) Situs of Arbitration Proceedings: Franchisee and any Guarantor are not required to agree to the arbitration of disputes at a location that is remote from the site of Franchisee's business.
- (3) Restrictions on Forum: Franchisee and any Guarantor are not required to consent to the jurisdiction of courts outside of North Dakota.
- (4) Liquidated Damages and Termination Penalties: Franchisee is not required to consent to liquidated damages or termination penalties.
- (5) Applicable Laws: The Agreement (and any Guaranty Agreement) is governed by the laws of the State of North Dakota.
- (6) Waiver of Trial by Jury: Franchisee and any Guarantor do not waive a trial by jury.
- (7) Waiver of Exemplary and Punitive Damages: The parties do not waive exemplary and punitive damages.
- (8) General Release: Franchisee and any Guarantor are not required to sign a general release upon renewal of the Agreement.
- (9) Limitation of Claims: Franchisee is not required to consent to a limitation of claims. The statute of limitations under North Dakota law applies.
- (10) Enforcement of Agreement: The prevailing party in any enforcement action is entitled to recover all costs and expenses including attorney's fees.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the standard agreement includes a waiver of exemplary and punitive damages. However, this waiver does not apply to franchisees in North Dakota.
Specifically, the North Dakota Rider to the Franchise Agreement states that franchisees and any guarantors are not required to waive exemplary and punitive damages. This means that if a Better Blend franchisee in North Dakota has a dispute with the franchisor, they retain the right to seek exemplary or punitive damages in legal proceedings.
This exception is documented in a rider to the standard franchise agreement, which suggests that Better Blend tailors its agreements to comply with specific state laws. Prospective franchisees should carefully review any state-specific riders to understand how the standard agreement is modified in their jurisdiction.