When does the City Wide Franchise Agreement take effect for franchises in North Dakota?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The "Choice of Law" (ITEM 17(w) of the Franchise Disclosure Document and Section 29 of the Franchise Agreement) is amended to read as follows:
"This Agreement takes effect upon its acceptance and execution by Company in North Dakota."
"Applicable Law" (Section 29 of the Franchise Agreement) is amended to read as follows:
29(a) shall be deleted and amended to read as follows:
"This Agreement takes effect upon its acceptance and execution by Franchisor in North Dakota."
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, the Franchise Agreement takes effect upon its acceptance and execution by City Wide in North Dakota. This amendment specifically applies to franchises operating in North Dakota. This means that for a City Wide franchise in North Dakota, the agreement is not binding until City Wide formally accepts and executes it within the state.
This stipulation modifies the general 'Choice of Law' outlined in Item 17(w) of the Franchise Disclosure Document and Section 29 of the Franchise Agreement. It ensures that the agreement's enforceability is tied to City Wide's actions within North Dakota, potentially offering franchisees in that state some legal advantages or clarity regarding jurisdiction and governing law.
Prospective franchisees in North Dakota should pay close attention to this clause, as it dictates when the agreement becomes legally binding. They should confirm with City Wide the exact process and requirements for acceptance and execution to ensure full compliance and understanding of their rights and obligations under the Franchise Agreement.