factual

In North Dakota, does Deer Solution require consent to termination from franchisees?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. Item 6, "Other Fees", Item 6 is supplemented by the addition of the following:

No consent to termination or liquidated damages shall be required from franchisees in the State of North Dakota.

    1. Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:
    • B. Any provision requiring a franchisee to consent to termination or liquidation damages has been determined to be unfair, unjust, and inequitable within the intent of 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 Deer Solution's 2025 Franchise Disclosure Document, franchisees in North Dakota are not required to consent to termination or liquidated damages. This protection is explicitly stated in the North Dakota FDD Amendment, which supplements Item 6, "Other Fees." This amendment reflects the application of North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17, to franchises operating under North Dakota law.

This provision means that Deer Solution franchisees in North Dakota benefit from specific legal protections under state law. The franchisor cannot enforce clauses that would compel a franchisee to agree to termination or pay liquidated damages. This is a significant advantage for franchisees, as it prevents Deer Solution from imposing potentially unfair or onerous financial burdens during termination.

Furthermore, Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is also supplemented by the North Dakota FDD Amendment. It states that any provision requiring a franchisee to consent to termination or liquidation damages has been determined to be unfair, unjust, and inequitable under Section 51-19-09 of the North Dakota Franchise Investment Law. This reinforces the franchisee's protection against mandatory consent to termination or liquidated damages, ensuring that such provisions are unenforceable in North Dakota.

Disclaimer: This information is extracted from the 2025 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.