What statute of limitations applies to Desi District franchise agreements in North Dakota?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
In the State of North Dakota only, this Disclosure Document is amended as follows:
THE SECURITIES COMMISSIONER HAS HELD THE FOLLOWING TO BE UNFAIR, UNJUST OR INEQUITABLE TO NORTH DAKOTA FRANCHISEES (NDCC SECTION 51-19-09):
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- Limitation of Claims: Franchise Agreements that require the franchisee to consent to a limitation of claims. The statute of limitations under North Dakota law applies.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the statute of limitations under North Dakota law applies to franchise agreements within that state. This means that any clause in the franchise agreement that attempts to limit the time a franchisee has to bring a claim is not enforceable in North Dakota.
Specifically, Desi District franchisees in North Dakota are not required to consent to a limitation of claims. This ensures that franchisees have the full statutory period allowed under North Dakota law to pursue legal claims against the franchisor, without being bound by any shorter contractual limitations.
This protection is due to the North Dakota Securities Commissioner's determination that limiting claims is unfair, unjust, or inequitable to franchisees in the state. Therefore, the standard statute of limitations as defined by North Dakota law will govern any legal actions arising from the franchise agreement.