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To what extent will subarticle 16.A.(4)(f) of the Deck Medic Franchise Agreement be enforced?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

Article 16 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota Franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."

Source: Item 23 — RECEIPTS (FDD pages 43–228)

What This Means (2024 FDD)

Based on the 2024 Deck Medic Franchise Disclosure Document, the enforceability of subarticle 16.A.(4)(f) within the Franchise Agreement is subject to specific state laws. Article 16 generally concerns termination of the agreement.

Specifically, for North Dakota franchisees, the North Dakota Addendum amends Article 16, stating that "Provisions requiring North Dakota Franchisees to consent to termination or liquidated damages are not enforceable in North Dakota." This means that if subarticle 16.A.(4)(f) contains provisions requiring consent to termination or involves liquidated damages, it would not be enforceable in North Dakota.

For franchisees in Washington, the Washington Franchise Agreement Amendment indicates that the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, may supersede the Franchise Agreement in areas of termination and renewal. Additionally, provisions that unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable. Therefore, if subarticle 16.A.(4)(f) conflicts with these protections, it may not be enforced in Washington. Franchisees in other states such as Minnesota, New York, Illinois, and Maryland, have certain rights that cannot be waived, but the excerpts do not specifically address the enforceability of provisions related to termination or liquidated damages.

A prospective Deck Medic franchisee should consult with legal counsel to understand the specific implications and enforceability of subarticle 16.A.(4)(f) in their state, considering these state-specific amendments and protections.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.