How is Article 12.7(B) of the Circle K Franchise Agreement modified in North Dakota?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum will apply to franchises sold in the state of North Dakota and will be for the purpose of complying with North Dakota statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement will be amended to include the following:
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- Article 12.7(B) is hereby modified to delete any part thereof that is inconsistent with Section 51-19-09 of the North Dakota Century Code.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Article 12.7(B) of the franchise agreement is modified for franchises sold in North Dakota. The modification stipulates that any part of Article 12.7(B) that is inconsistent with Section 51-19-09 of the North Dakota Century Code is deleted.
This modification is implemented to ensure compliance with North Dakota's franchise investment laws, specifically Section 51-19-09, which aims to protect franchisees from unfair or inequitable terms. By deleting any conflicting parts of Article 12.7(B), the agreement aligns with North Dakota's regulations, providing a more balanced and fair contractual relationship for franchisees operating in that state.
For a prospective Circle K franchisee in North Dakota, this means that the terms outlined in Article 12.7(B) of the standard franchise agreement may not fully apply. It is crucial to carefully review the modified agreement, with specific attention to Article 12.7(B), to understand the exact terms and conditions that govern the franchise relationship in North Dakota. Consulting with a legal professional experienced in franchise law is advisable to fully grasp the implications of this modification and ensure compliance with all applicable regulations.