Which law applies to Casiola franchisees located in North Dakota?

According to Casiola's 2024 Franchise Disclosure Document, the North Dakota Franchise Investment Law, Section 51-19, applies to Casiola franchisees located in North Dakota. Specifically, Article 18 of the Franchise Agreement is amended to state that "for North Dakota franchisees, North Dakota law shall apply."

This means that several provisions in the standard Casiola Franchise Agreement are modified or deemed unenforceable for franchisees operating in North Dakota. These include provisions related to general releases upon renewal, consent to termination or liquidated damages, covenants not to compete, consent to jurisdiction of courts outside North Dakota, waiver of trial by jury, and waiver of exemplary and punitive damages. These modifications are made to align with the protections afforded to franchisees under North Dakota law.

Furthermore, the statute of limitations under North Dakota Law will apply, superseding any provisions requiring a limitation of claims within one year. This ensures that North Dakota franchisees have the full statutory period to bring claims. The North Dakota FDD Amendment also states that refund and cancellation provisions will be inapplicable to franchises operating under North Dakota Law, North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17.

Prospective Casiola franchisees in North Dakota should carefully review the North Dakota Addendum to understand how the state's franchise laws affect their rights and obligations under the Franchise Agreement. They should also consult with an attorney to ensure they fully understand the implications of these amendments.