In North Dakota, are Itan franchisees required to consent to a waiver of trial by jury?

According to Itan's 2025 Franchise Disclosure Document, provisions requiring franchisees in North Dakota to consent to a waiver of trial by jury have been determined to be unfair, unjust, and inequitable under Section 51-19-09 of the North Dakota Franchise Investment Law. This means that Itan cannot enforce a clause in the franchise agreement that forces a franchisee to waive their right to a jury trial in North Dakota.

This protection is significant for prospective Itan franchisees in North Dakota because it ensures they retain their constitutional right to a jury trial in disputes with the franchisor. Without this protection, franchisees could be forced to resolve disputes through arbitration or bench trials, where a judge makes the final decision. Jury trials are often seen as more favorable to franchisees, as they allow for a panel of peers to hear the case and make a determination based on the evidence presented.

It is important for prospective franchisees to understand these state-specific protections, as franchise agreements often contain clauses that appear to waive these rights. However, as the FDD indicates, these clauses are modified or unenforceable in North Dakota to comply with state law. This ensures that Itan franchisees in North Dakota have the same legal rights and protections as other businesses in the state.