How are choice of law provisions in the Kidokinetics FDD amended for North Dakota franchisees?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Sections of the FDD, the Franchise Agreement, and the Supplemental Agreements relating to choice of law may not be enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law, and are amended accordingly to the extent required by law.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, for franchisees in North Dakota, the sections of the FDD, the Franchise Agreement, and any Supplemental Agreements relating to choice of law may not be enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law. Therefore, these sections are amended to the extent required by law.
In essence, this means that while the Kidokinetics franchise agreement might typically specify a particular state's laws to govern the agreement, this provision may not be fully upheld in North Dakota. The North Dakota Franchise Investment Law could take precedence, potentially ensuring that certain disputes are resolved under North Dakota law, regardless of what the franchise agreement states.
This amendment protects Kidokinetics franchisees in North Dakota by ensuring that the protections and rights afforded to them under North Dakota's franchise laws are not undermined by choice of law provisions that might favor the franchisor. Prospective franchisees should consult with a legal professional to fully understand the implications of this amendment and how it affects their rights and obligations under the franchise agreement.