factual

For Camp Margaritaville franchises in North Dakota, what law governs the franchise agreement?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Limitation of Claims.

The statute of limitations under ND Law applies to all matters coming under ND Law.

    1. Governing Law.

This Agreement will be governed by North Dakota law.

Source: Item 23 — RECEIPTS (FDD pages 72–406)

What This Means (2025 FDD)

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the franchise agreement for locations in North Dakota is governed by North Dakota law. Specifically, the statute of limitations under North Dakota law applies to all matters coming under ND Law. This means that any legal claims related to the franchise agreement will be subject to the time limits and legal principles established by North Dakota.

Furthermore, the FDD includes a North Dakota Rider to the franchise agreement. This rider modifies certain terms of the standard agreement to comply with North Dakota law. For example, franchisees in North Dakota are not required to sign a general release regarding matters covered by the North Dakota Franchise Investment Law. This protects the franchisee's rights under state law.

Additionally, the rider specifies that covenants not to compete are generally unenforceable in North Dakota. Any legal matters falling under the North Dakota Franchise Investment Law can be brought in North Dakota courts. The rider also amends the agreement's mediation and arbitration clauses, stating that matters under ND Law will be submitted to mediation or arbitration in a location mutually agreeable and not remote from the franchisee's business. These modifications ensure that the Camp Margaritaville franchise agreement adheres to North Dakota's specific legal requirements and provides certain protections to franchisees operating in that state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.