Does Crown Gold Exchange require the franchisee to consent to a limitation of claims?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
In the State of North Dakota only, this Disclosure Document is amended as follows:
THE SECURITIES COMMISSIONER HAS HELD THE FOLLOWING TO BE UNFAIR, UNJUST OR INEQUITABLE TO NORTH DAKOTA FRANCHISEES (NDCC SECTION 51-19-09):
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- Limitation of Claims: Franchise Agreements that require the franchisee to consent to a limitation of claims. The statute of limita
Source: Item 23 — RECEIPTS (FDD pages 39–114)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the state of North Dakota has determined that requiring franchisees to consent to a limitation of claims is unfair, unjust, or inequitable. This means that Crown Gold Exchange's franchise agreements cannot force North Dakota franchisees to agree to a limitation of claims.
This determination by the North Dakota Securities Commissioner is based on North Dakota Century Code (NDCC) Section 51-19-09. The FDD specifically calls out that franchise agreements that include a limitation of claims are considered unfair in North Dakota.
For prospective Crown Gold Exchange franchisees in North Dakota, this addendum provides additional protection. It prevents Crown Gold Exchange from enforcing a clause that would limit the franchisee's ability to bring claims against the franchisor, ensuring that franchisees retain their legal rights and recourse under the law.