Besides Texas state law, what other law might govern the Boulder Designs franchise agreement?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 23.1, of the Franchise Agreement provide that Texas law governs the Franchise Agreement.
The Securities Commissioner of the State of North Dakota has held that Franchise Agreements which specify that they are to be governed by the laws of a state other than North Dakota are unfair, unjust or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law, therefore, this provision is void and of no effect in the State of North Dakota;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, while the franchise agreement is generally construed and interpreted in accordance with Texas state law, there are exceptions. Specifically, the North Dakota Franchise Investment Law may take precedence for franchises operating in North Dakota.
For franchisees in North Dakota, certain provisions of the Boulder Designs franchise agreement that conflict with North Dakota law are void and of no effect. This includes the section stating that Texas law governs the franchise agreement. Additionally, any requirement for franchisees to consent to the jurisdiction of courts outside of North Dakota is also voided.
This means that if a dispute arises with a Boulder Designs franchise in North Dakota, North Dakota law and North Dakota courts may govern the resolution, regardless of what the standard franchise agreement states. Prospective franchisees should be aware of these state-specific amendments and how they might affect their rights and obligations.