What North Dakota law governs the fairness of provisions in the Casiola Franchise Agreement?

According to the 2024 Casiola Franchise Disclosure Document, Section 51-19-09 of the North Dakota Franchise Investment Law governs the fairness of certain provisions within the Casiola Franchise Agreement for franchisees in North Dakota.

Specifically, several provisions that might typically be included in a franchise agreement are deemed unfair, unjust, and inequitable under North Dakota law. These include requiring a franchisee to sign a general release upon renewal, consent to termination or liquidated damages, agree to arbitration or mediation in a remote location, waive their right to a jury trial, or waive exemplary and punitive damages. The law also addresses provisions that require the Franchise Agreement to be construed under the laws of a state other than North Dakota.

For a prospective Casiola franchisee in North Dakota, this means that certain clauses within the standard franchise agreement that might be unfavorable are unenforceable under North Dakota law. Casiola's FDD includes a North Dakota Addendum that modifies specific articles of the Franchise Agreement to comply with North Dakota law. This ensures that franchisees are not subjected to terms that the state deems unfair or inequitable, offering additional protection compared to franchisees in other states.