Does the Desi District franchise agreement allow for the waiver of exemplary damages?

According to the 2024 Desi District Franchise Disclosure Document, the franchise agreement does not allow for the waiver of exemplary and punitive damages in North Dakota. Specifically, the North Dakota Rider to the Franchise and Multi-Unit Development Agreement states that the parties do not waive exemplary and punitive damages. This amendment ensures that franchisees in North Dakota retain their rights to seek such damages, which are intended to punish the wrongdoer and deter similar conduct in the future.

This provision is outlined within a series of amendments to the standard franchise agreement, addressing various legal aspects to comply with North Dakota law. These amendments cover restrictive covenants, arbitration proceedings, forum restrictions, liquidated damages, applicable laws, jury trial waivers, limitations of claims, and general releases.

For a prospective Desi District franchisee in North Dakota, this means that the franchise agreement is modified to protect their right to pursue exemplary and punitive damages in case of disputes. This could be a significant benefit, as it provides an additional legal recourse should Desi District engage in misconduct that warrants such penalties. Franchisees in other states may not have this protection, so it is important to review the specific riders and addenda applicable to their state.