When is a waiver of exemplary or punitive damages valid for Eos Worldwide franchisees?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
aced by the following:
| (v) Choice of Forum | Section 20.1 | North Dakota |
|---|---|---|
| --------------------- | -------------- | -------------- |
- Item 17(w) is amended by adding the following sentence in the Summary Section:
"The laws of the state of North Dakota supersede any provisions of the Franchise Agreement, the other agreements or Delaware law if such provisions are in conflict with North Dakota law."
-
- North Dakota has determined that (i) requiring a franchisee to sign a general release upon renewal of the Franchise Agreement; (ii) requiring a franchisee to consent to a waiver of trial by jury; and (iii) requiring the franchisee to consent to a waiver of exemplary and punitive damages are unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. Accordingly, (i) all references to the Franchisee signing a general release upon renewal of the Franchise Agreement; (ii) all references to the Franchisee requiring waiver of a jury trial; and (iii) all references requiring the franchisee to consent to a waiver of exemplary and punitive damages are deleted.
-
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the validity of a waiver regarding exemplary or punitive damages depends on the franchisee's location.
In North Dakota, any provision requiring a franchisee to waive exemplary and punitive damages is deleted from the franchise agreement. This means Eos Worldwide franchisees in North Dakota are not required to waive their right to seek such damages.
However, in Washington, such waivers are void unless they are executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, for the waiver to be valid in Washington, both Eos Worldwide and the franchisee must be represented by independent legal counsel. This implies that Eos Worldwide franchisees in Washington can only waive their rights to exemplary or punitive damages under very specific conditions after the agreement has commenced.