What is the geographic limit to which the North Dakota addendum applies to Bombs Away franchises?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the North Dakota addendum applies specifically and exclusively to Bombs Away franchisees operating in the state of North Dakota. This means that the provisions outlined in the addendum are only relevant to those who own or plan to establish a franchise within North Dakota.
The addendum addresses specific issues that the Securities Commissioner of North Dakota considers unfair, unjust, or inequitable to North Dakota franchisees. These issues include restrictive covenants, the location of arbitration proceedings, and restrictions on the legal forum available to franchisees. The addendum aims to ensure that Bombs Away franchisees in North Dakota receive fair treatment under the state's laws.
For a prospective Bombs Away franchisee, this means that if you are considering opening a franchise in North Dakota, you should carefully review the North Dakota addendum to understand your rights and obligations under North Dakota law. If you are opening a franchise outside of North Dakota, this addendum does not apply to you, and you should instead review any addenda specific to the state in which you plan to operate.