Under what circumstances can Cordova franchisees seek treble damages?

According to the 2025 Cordova FDD, provisions requiring North Dakota franchisees 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. This amendment specifically addresses the enforceability of certain provisions within the Cordova Franchise Agreement for franchisees located in North Dakota, in recognition of the North Dakota Franchise Investment Law, Section 51-19.

For prospective Cordova franchisees in North Dakota, this means that the standard franchise agreement's clauses that might require them to waive their rights to seek exemplary or punitive damages are not applicable. Exemplary or punitive damages are typically awarded in cases where the franchisor's conduct is found to be particularly egregious or malicious. This protection ensures that North Dakota franchisees retain the right to pursue such damages if they believe the franchisor has acted in bad faith or engaged in misconduct.

This amendment provides a more franchisee-friendly legal environment in North Dakota compared to other states where such waivers might be enforceable. It reflects North Dakota's commitment to protecting franchisees' rights and ensuring a fairer balance of power between franchisors and franchisees within the state. Cordova franchisees operating outside of North Dakota may not have the same protections.