Does the exception to the release requirement for renewal or assignment/transfer in the Cool Binz Franchise Agreement apply to claims arising under the North Dakota Franchise Investment Law?

According to the 2025 Cool Binz Franchise Disclosure Document, the release required as a condition of renewal and/or assignment/transfer does not apply to the extent prohibited by applicable law with respect to claims arising under the North Dakota Franchise Investment Law. This amendment is specifically applied to Sections 10.B.8, 11.C, and 12.A of the Franchise Agreement through an addendum for use in North Dakota. This means that Cool Binz franchisees in North Dakota retain their rights under the North Dakota Franchise Investment Law, even when signing releases for renewal or transfer.

This provision ensures that Cool Binz franchisees in North Dakota are not forced to waive their rights under the state's franchise law when renewing their agreement or transferring their franchise. This protects franchisees from potentially unfair or overreaching actions by the franchisor. The North Dakota addendum takes precedence over the standard Franchise Agreement in case of any conflict, further solidifying this protection.

For a prospective Cool Binz franchisee in North Dakota, this is a beneficial provision. It means that even when renewing or transferring the franchise, they will not be required to release Cool Binz from claims arising under the North Dakota Franchise Investment Law. This provides an added layer of security and ensures that franchisees can still pursue legal remedies if they believe Cool Binz has violated the state's franchise laws. This clause reflects a commitment to compliance with North Dakota law and offers franchisees some protection against potentially overreaching release requirements.