What is the effect of Section 23.6 of the Boulder Designs Franchise Agreement in North Dakota?

According to the 2025 Boulder Designs Franchise Disclosure Document, Section 23.6 of the Franchise Agreement, which stipulates that the franchisee must agree to a waiver of a jury trial, is void and of no effect in the State of North Dakota. This determination was made by the Securities Commissioner of the State of North Dakota, who deemed the jury trial waiver to be unfair, unjust, and inequitable under Section 51-19-09 of the North Dakota Franchise Investment Law.

In practical terms, this means that if a Boulder Designs franchisee in North Dakota enters into a dispute with the franchisor that leads to litigation, the franchisee retains the right to a jury trial, despite any clause in the franchise agreement attempting to waive that right. This amendment ensures that franchisees in North Dakota are not forced to forfeit their right to have a jury decide their case.

This type of amendment is specific to North Dakota due to its franchise investment laws and the stance taken by its Securities Commissioner. Franchise agreements often contain clauses that specify dispute resolution methods, governing laws, and waivers, but these can be subject to state-specific regulations to protect franchisees. Prospective Boulder Designs franchisees should be aware of these state-specific amendments and how they impact their rights within the franchise agreement.