Under what circumstances is the waiver of punitive, exemplary, consequential, or speculative damages not applicable in a dispute between Deer Solution and its franchisee?

According to the 2025 Deer Solution Franchise Disclosure Document, a provision requiring a franchisee to consent to a waiver of exemplary and punitive damages is not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law. This means that if a Deer Solution franchisee operates in North Dakota, they cannot be forced to waive their right to seek exemplary or punitive damages in a dispute with Deer Solution. This protection is specifically tied to North Dakota law.

This protection is part of a broader set of amendments applicable to Deer Solution franchisees in North Dakota. These amendments recognize the North Dakota Franchise Investment Law, Section 51-19, and include stipulations that general releases upon renewal, consent to termination or liquidated damages, and covenants not to compete may not be enforceable in North Dakota. Additionally, provisions requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may also be unenforceable.

For prospective Deer Solution franchisees, this means that the standard franchise agreement is modified by state-specific addenda that provide additional protections. If operating in North Dakota, certain clauses related to waivers, releases, and dispute resolution are not enforceable, offering more legal recourse to the franchisee. It is important for potential franchisees to carefully review any state-specific amendments to understand their rights and obligations fully.

It is also important to note that the New York FDD Amendment states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Deer Solution or its representatives. This provision supersedes any other term in the franchise agreement, offering additional protection to franchisees in New York.