What does the North Dakota Rider amend for Fly To Fit franchisees?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
NORTH DAKOTA RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
This Rider amends the Franchise and Multi-Unit Development Agreement dated (the "Agreement"), between Fly To Fit Franchise, LLC, a Delaware Limited Liability Company ("Fly To Fit Franchise") and, a ("Franchisee").
- 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.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the North Dakota Rider amends the Franchise and Multi-Unit Development Agreement to comply with North Dakota law.
Specifically, the rider addresses several key areas to protect Fly To Fit franchisees in North Dakota. It clarifies that restrictive covenants are subject to North Dakota Century Code (NDCC) Section 9-08-06. It ensures that franchisees and any guarantors are not obligated to arbitrate disputes in locations far from their business or consent to the jurisdiction of courts outside North Dakota. The rider also states that Fly To Fit franchisees are not required to consent to liquidated damages or termination penalties.
Additionally, the agreement and any guaranty agreement are governed by the laws of North Dakota. Fly To Fit franchisees and any guarantors do not waive their right to a trial by jury, nor do they waive exemplary and punitive damages. They are also not required to sign a general release upon renewal of the agreement or consent to a limitation of claims, with the statute of limitations under North Dakota law applying. Finally, the prevailing party in any enforcement action is entitled to recover all costs and expenses, including attorney's fees.
In essence, the North Dakota Rider modifies the standard Fly To Fit franchise agreement to align with North Dakota's legal requirements, providing additional protections and rights to franchisees operating in that state.