Is the Expense Reduction Analysts franchise agreement amendment dependent on the franchisee's location?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO EXPENSE REDUCTION ANALYSTS, INC. REGIONAL FRANCHISE DISCLOSURE DOCUMENT AND FRANCHISE AGREEMENT FOR THE STATE OF NORTH DAKOTA
In North Dakota, the Disclosure Document is amended as follows to conform to North Dakota law:
Item 17 (c) is revised to omit any requirement that a general release be signed as a condition of renewal.
Item 17 (r) is amended to add the following: "To the extent that covenants not to compete apply to periods after the term of the franchise, contrary to Section 9-08-06, N.D.C.C, they are generally considered unenforceable in the State of North Dakota."
Item 17 (u) of the Disclosure Document and Section 28.2 of the Franchise Agreement are amended to state that the site of any mediation or arbitration is agreeable to all parties.
Item 17 (v) (choice of forum) of the Disclosure Document and Section 33.4(1) of the Franchise Agreement are amended to add the following: "Any provision in the Franchise Agreement which designates jurisdiction or venue or requires the franchisee to agree to jurisdiction or venue in a forum outside of North Dakota is void with respect to any cause of action which is otherwise enforceable in North Dakota.
Item 17 (w) (choice of law) and Section 33.4(2) of the Franchise Agreement are amended to add the following: "Any provision in the Franchise Agreement requiring that the Franchise Agreement be construed according to the laws of a state other than North Dakota are unfair, unjust or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
The Franchise Agreement is revised to omit any requirement that a general release be signed as a condition of renewal.
Section 27.6 of the Franchise Agreement is amended to add the following:
ADDENDUM TO EXPENSE REDUCTION ANALYSTS, INC. REGIONAL FRANCHISE DISCLOSURE DOCUMENT AND FRANCHISE AGREEMENT FOR THE STATE OF MINNESOTA
The following applies to franchises and franchisees subject to Minnesota statutes and regulations. The Item number corresponds to those in the main body of the Disclosure Document.
The Franchise Agreement requires litigation for disputes not settled by negotiation or mediation. The litigation will occur in a state other than Minnesota, with costs being borne equally by both parties. Under Minnesota Statutes § 80C.21 and Minnesota Rule Part 2860.4400J, this provision may not in any way invalidate or reduce any of the franchise owner's rights that are listed in Chapter 80C of the Minnesota Statutes.
The Franchise Agreement requires application of the laws of a state other than Minnesota. Under Minnesota Statutes § 80C.21 and Minnesota Rule Part 2860.4400J, this Section may not in any way invalidate or reduce any of the franchise owner's rights that are listed in Chapter 80C of the Minnesota Statutes.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (REGIONAL FRANCHISEES) (FDD pages 52–57)
What This Means (2025 FDD)
Yes, according to the 2025 Expense Reduction Analysts Franchise Disclosure Document, the franchise agreement amendment is dependent on the franchisee's location. The FDD includes addenda that modify the standard franchise agreement to comply with specific state laws. These addenda address various legal aspects, such as termination, transfer, and non-renewal rights, as well as the enforceability of non-compete clauses and dispute resolution processes.
For example, the addendum for North Dakota modifies Item 17 of the Disclosure Document and Section 28.2 of the Franchise Agreement to ensure mediation or arbitration sites are agreeable to all parties. It also voids any provision that designates jurisdiction or venue outside of North Dakota for causes of action enforceable in North Dakota. Similarly, the addendum for Minnesota states that certain provisions in the Franchise Agreement cannot reduce any of the franchise owner's rights listed in Chapter 80C of the Minnesota Statutes.
These state-specific addenda ensure that the Expense Reduction Analysts franchise agreement complies with local laws, providing franchisees with the protections and rights mandated by their state. Prospective franchisees should carefully review the addendum for their specific state to understand how the standard franchise agreement is modified to meet local legal requirements. This is a common practice in franchising to adapt agreements to the varying legal landscapes across different states.