Are provisions requiring North Dakota Casiola franchisees to consent to termination or liquidated damages enforceable according to the North Dakota Franchise Agreement Amendment?

According to Casiola's 2024 Franchise Disclosure Document, specifically the North Dakota Franchise Agreement Amendment, provisions requiring North Dakota franchisees to consent to termination or liquidated damages are not enforceable in North Dakota. This amendment is in place due to the North Dakota Franchise Investment Law, Section 51-19. The North Dakota Addendum applies only to residents of North Dakota or if the Casiola Business will be located within the State of North Dakota.

This means that Casiola franchisees in North Dakota have additional protections under state law. Casiola cannot enforce clauses in the standard franchise agreement that would force a franchisee to agree to termination or pay liquidated damages. This provides a significant benefit to franchisees, as it prevents Casiola from leveraging these clauses against them.

Prospective franchisees should be aware that this amendment specifically addresses issues deemed unfair, unjust, and inequitable under North Dakota law. It is crucial for potential franchisees to carefully review the North Dakota Franchise Investment Law, Section 51-19, to fully understand their rights and protections. This ensures that franchisees are not unknowingly waiving rights that are protected under North Dakota law.