Does the Desi District FDD specify any geographic limitations regarding the applicability of injunctive or restrictive orders?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
ng injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
3. Effective Date. This Rider is effective as of the Effective Date.
DESI DISTRICT FRANCHISE GROUP, LLC
NEW YORK RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
This Rider amends the Franchise and Multi-Unit Development Agreement dated (the "Agreement"), between Desi District Franchise Group, LLC, a Delaware ("Desi Limited District Liability Franchise Company Group") , a ("Franchisee"). and 1. Capitalized terms used but not defined in this Rider have the meanings given Definitions. in the Agreement. 2. Waivers Not Required. would relieve Desi District Franchise Group by New York General Business Law, Article 33. Notwithstanding any provision of the Agreement to the contrary, Franchisee is not required to assent to a release, assignment, novation, waiver or estoppel which or any other person from any duty or liability imposed 3. Waivers of New York Law Deleted. Agreement purporting to bind Franchisee hereby deleted. Any condition, stipulation, or provision in the to waive compliance by Desi District Franchise Group with any provision of New York General Business Law, or any rule promulgated thereunder, is 4. Governing Law. Notwithstanding any provision of the Agreement to the contrary, the New York Franchises Law shall govern any claim arising under that law. 5. Effective Date. This Rider is effective as of the Effective Date. Agreed to by: DESI DISTRICT FRANCHISE GROUP, LLC Date:
NORTH DAKOTA RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
| This Rider amends the Franchise and Multi-Unit Development Agreement dated | ||||||||
|---|---|---|---|---|---|---|---|---|
| (the "Agreement"), between Desi District Franchise Group, LLC, a | ||||||||
| Delaware | Limited | Liability | Company , a ("Franchisee"). | ("Desi | District | Franchise | Group") | and |
- 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement.
- 2. Amendments. The Agreement (and any Guaranty Agreement) is amended to comply with the following:
- (1) Restrictive Covenants: Every contract by which Franchisee, any Guarantor, or any other person is restrained from exercising a lawful profession, trade, or business of any kind is subject to NDCC Section 9-08-06.
- (2) Situs of Arbitration Proceedings: Franchisee and any Guarantor are not required to agree to the arbitration of disputes at a location that is remote from the site of Franchisee's business.
- (3) Restrictions on Forum: Franchisee and any Guarantor are not required to consent to the jurisdiction of courts outside of North Dakota.
- (4) Liquidated Damages and Termination Penalties: Franchisee is not required to consent to liquidated damages or termination penalties.
- (5) Applicable Laws: The Agreement (and any Guaranty Agreement) is governed by the laws of the State of North Dakota.
- (6) Waiver of Trial by Jury: Franchisee and any Guarantor do not waive a trial by jury.
- (7) Waiver of Exemplary and Punitive Damages: The parties do not waive exemplary and punitive damages.
- (8) General Release: Franchisee and any Guarantor are not required to sign a general release upon renewal of the Agreement.
- (9) Limitation of Claims: Franchisee is not required to consent to a limitation of claims. The statute of limitations under North Dakota law applies.
- (10) Enforcement of Agreement: The prevailing party in any enforcement action is entitled to recover all costs and expenses including attorney's fees.
- 3. Effective Date. This Rider is effective as of the Effective Date.
DESI DISTRICT FRANCHISE GROUP, LLC
RHODE ISLAND RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
Delaware Limited Liability Company (the "Agreement"), between Desi District Franchise Group, LLC, a ("Desi District Franchise Group") and , a ("Franchisee"). 1. Capitalized terms used but not defined in this Rider have the meanings given Definitions. in the Agreement. 2. Any provision of the Agreement restricting jurisdiction or venue Jurisdiction and Venue. to a forum outside the State of Rhode Island or requiring the application of the laws of another Investment Act. state is void with respect to a claim otherwise enforceable under Rhode Island Franchise 3. This Rider is effective as of the Effective Date. Effective Date. Agreed to by: DESI DISTRICT FRANCHISE GROUP, LLC
WASHINGTON ADDENDUM TO DISCLOSURE DOCUMENT AND RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
The state of Washington has a statute, RCW 19.100.180 which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to the 2024 Desi District FDD, there are geographic limitations specified through state-specific riders and addenda that address the enforcement and applicability of certain terms, including those related to restrictive covenants and legal proceedings. Specifically, the New York Rider, North Dakota Rider, Rhode Island Rider, Washington Addendum, Maryland Rider, and Minnesota Rider each contain provisions that modify the standard franchise agreement to comply with the franchise laws of those states.
For example, the North Dakota Rider states that every contract that restrains a franchisee from exercising a lawful profession, trade, or business is subject to North Dakota law. It also specifies that franchisees are not required to consent to the jurisdiction of courts outside of North Dakota. Similarly, the Washington Addendum notes that state statutes and court decisions may supersede the franchise agreement, particularly in areas of termination and renewal. The Rhode Island Rider indicates that any provision restricting jurisdiction or venue to a forum outside of Rhode Island is void with respect to claims enforceable under Rhode Island franchise law.
These riders and addenda collectively act as geographic limitations by ensuring that certain provisions of the Desi District franchise agreement, including those pertaining to injunctive relief or restrictive orders, are interpreted and enforced in accordance with local state laws, which may provide additional protections or limitations for franchisees. Therefore, a Desi District franchisee needs to carefully review the rider specific to their state to understand the precise limitations and modifications to the standard agreement.