In connection with the commencement of a Deer Solution franchise relationship, can a franchisee disclaim reliance on statements made by the franchisor in North Dakota?

According to the 2025 Deer Solution Franchise Disclosure Document, a North Dakota franchisee cannot disclaim reliance on statements made by the franchisor. Specifically, any statement, questionnaire, or acknowledgement signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Deer Solution or its representatives. This provision overrides any conflicting terms in other franchise documents. This protection applies if the franchisee is a resident of North Dakota or if their Deer Solution business will be located in North Dakota.

This means that Deer Solution franchisees in North Dakota retain their legal rights to pursue claims against the franchisor based on misrepresentations or fraudulent statements, even if they have signed documents that appear to waive those rights. This is a significant protection for franchisees, as it prevents Deer Solution from using standard contract language to shield itself from liability for misleading or false statements.

This provision is particularly important in light of Section 51-19-09 of the North Dakota Franchise Investment Law, which addresses unfair, unjust, and inequitable practices in franchising. The FDD includes several amendments to the standard franchise agreement to ensure compliance with this law, further strengthening the rights of Deer Solution franchisees in North Dakota. These amendments cover issues such as waivers of rights, limitations of claims, choice of law, and venue for disputes, all aimed at providing a fairer legal framework for franchisees operating in North Dakota.