What is the exception to the governing law provision in Article 18.F of the Deer Solution Franchise Agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota."
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota Franchisees, North Dakota law shall apply."
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee 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."
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, Article 18 of the Franchise Agreement, which typically covers enforcement and construction, has specific amendments depending on the franchisee's location. For franchisees in North Dakota, Article 18 is amended to state that North Dakota law will apply. This means that despite any general governing law provisions in the agreement, if you are a Deer Solution franchisee in North Dakota, the laws of North Dakota will take precedence.
Additionally, for North Dakota franchisees, certain provisions that might otherwise be enforceable are not. These include clauses requiring franchisees to consent to the jurisdiction of courts outside of North Dakota, provisions requiring a franchisee to consent to a waiver of trial by jury, and provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages. These exceptions are specifically tied to the North Dakota Franchise Investment Law.
For franchisees in Illinois, any provision in the Deer Solution Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, the agreement may provide for arbitration to take place outside of Illinois. Similarly, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
For franchisees in Maryland, Article 18.G. of the Deer Solution Franchise Agreement is amended to allow a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Additionally, Article 18.I. is amended to state that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.