Are provisions requiring a Deer Solution franchisee to consent to a waiver of exemplary and punitive damages enforceable under North Dakota law, according to the Franchise Agreement amendment?

According to Deer Solution's 2025 Franchise Disclosure Document, provisions requiring a franchisee to consent to a waiver of exemplary and punitive damages are not enforceable for North Dakota franchisees. The North Dakota Franchise Agreement Amendment specifically states that such provisions are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law. This amendment applies only if the franchisee is a resident of North Dakota or if their Deer Solution business will be located within the state of North Dakota.

This means that if a Deer Solution franchisee in North Dakota were to bring a claim against the franchisor, they would not be prevented from seeking exemplary or punitive damages, even if the franchise agreement contains a clause suggesting otherwise. This protection is afforded under North Dakota law, and the amendment ensures that the franchise agreement does not override these rights.

Prospective Deer Solution franchisees in North Dakota should understand that this amendment provides them with additional legal protections compared to franchisees in other states. It's important for franchisees to be aware of their rights under state law and how the franchise agreement interacts with those rights. This amendment reflects an effort to comply with North Dakota's franchise investment laws and to ensure fairness in the franchise relationship within the state.