Can Cool Binz require North Dakota franchisees to waive a trial by jury?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is added to the Cover Page of the Disclosure Document:
THE SECURITIES COMMISSIONER HAS HELD THE FOLLOWING TO BE UNFAIR, UNJUST, OR INEQUITABLE TO NORTH DAKOTA FRANCHISEES (SECTION 51-09-01.-51-09-17. N.D.C.C.)
- E. Waiver of Trial by Jury: Requiring North Dakota Franchises to consent to the waiver of a trial by jury.
To the extent required by the North Dakota Franchise Investment Law, the following language is deleted from Section 15.I. of the Franchise Agreement.
"You and we irrevocably waive trial by jury in any action, proceeding, or counterclaim, whether at law or in equity, brought by either of us."
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other
person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz cannot require North Dakota franchisees to consent to waiving a trial by jury. The Securities Commissioner has deemed this practice unfair, unjust, or inequitable to North Dakota franchisees.
To ensure compliance with North Dakota law, the addendum to the franchise agreement for use in North Dakota specifically deletes language from Section 15.I of the Franchise Agreement that requires franchisees to waive their right to a jury trial. This modification ensures that North Dakota franchisees retain their right to a trial by jury, despite any conflicting language in the standard franchise agreement.
This protection is further reinforced by a general provision stating that no statement, questionnaire, or acknowledgement signed by a franchisee can waive any claims under applicable state franchise law. This provision supersedes any other term in any document executed in connection with the franchise, providing an additional layer of security for franchisees in North Dakota.