What is added to the end of Section 12.G (Waiver of Punitive Damages) of the Bft Multi-Unit Agreement?

According to Bft's 2025 Franchise Disclosure Document, the content added to the end of Section 12.G (Waiver of Punitive Damages) of the Multi-Unit Agreement varies depending on the state where the developer is located. For developers in North Dakota, the following is added: "Franchisor and Franchisee acknowledge that certain parts of this provision might not be enforceable under the North Dakota Franchise Investment Law. However, Franchisor and Franchisee agree to enforce the provision to the extent the law allows." This means that while Bft aims to enforce the waiver of punitive damages, North Dakota law may override this provision in certain cases, and both parties agree to adhere to the law where it applies.

For developers in Minnesota, Section 12.G (Waiver of Punitive Damages) of the Multi-Unit Agreement is deleted if and to the extent required by the Minnesota Franchises Law. This indicates that Minnesota law may prohibit the waiver of punitive damages, and therefore, Bft removes this clause in the agreement for Minnesota developers to comply with state law.

These stipulations highlight the importance of understanding state-specific franchise laws, as the enforceability and content of certain clauses in the Multi-Unit Agreement can vary. Prospective Bft developers should consult with legal counsel to understand how these state-specific provisions affect their rights and obligations under the Multi-Unit Agreement.