What is the scope of civil liability for Casiola under Section 51-19-12 of the N.D.C.C.?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply."
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
Based on the 2024 Casiola Franchise Disclosure Document, there is no explicit mention of Section 51-19-12 of the North Dakota Century Code (N.D.C.C.) regarding the scope of civil liability for Casiola. However, the document includes several amendments related to the North Dakota Franchise Investment Law, Section 51-19, which may have implications for a franchisee's rights and remedies.
Specifically, the North Dakota Addendum states that provisions requiring franchisees to sign a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota. Additionally, provisions requiring franchisees to consent to termination or liquidated damages are also not enforceable. Furthermore, covenants not to compete are generally considered unenforceable in the State of North Dakota. These amendments suggest that Casiola franchisees in North Dakota retain certain rights and protections under state law, limiting the extent to which they can waive claims or be subjected to certain contractual obligations.
Moreover, the FDD indicates that provisions requiring a franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law. Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust, and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law; therefore, the statute of limitations under North Dakota Law will apply. These stipulations collectively suggest that Casiola franchisees in North Dakota have some protection against certain waivers and limitations of claims, but the document does not detail the scope of civil liability under Section 51-19-12 of the N.D.C.C.
Prospective Casiola franchisees in North Dakota should consult with a legal professional to fully understand their rights and obligations under North Dakota law, including the implications of Section 51-19-12 of the N.D.C.C., as it is not directly addressed in the provided FDD excerpts. They should also inquire with Casiola about any potential liabilities or obligations arising from this specific section of the code.