In North Dakota, where will litigation between Card My Yard and a franchisee be commenced and maintained?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent that Article XX of the Franchise Agreement would otherwise violate North Dakota law, these sections are amended by providing that all litigation by or between you and us, involving a franchised business operating in the State of North Dakota, will be commenced and maintained, at our election, in the state courts of North Dakota or the United States District Court for North Dakota, with the specific venue in either court system determined by appropriate jurisdiction and venue requirements.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if a Card My Yard franchisee operates in North Dakota, any litigation between the franchisee and Card My Yard will be commenced and maintained, at Card My Yard's election, in either the state courts of North Dakota or the United States District Court for North Dakota. The specific venue within either court system will be determined based on appropriate jurisdiction and venue requirements.
This means that a Card My Yard franchisee in North Dakota may have to litigate disputes with the franchisor in North Dakota, regardless of any conflicting provisions in the standard franchise agreement. This amendment ensures that North Dakota law prevails over the standard agreement in this specific matter.
This modification to the standard agreement provides some protection to Card My Yard franchisees in North Dakota, as it ensures that litigation will occur within the state, potentially making it more convenient and cost-effective for the franchisee. However, the ultimate choice of venue (state or federal court) remains with Card My Yard, subject to jurisdictional and venue requirements.