Which documents related to the Kidokinetics franchise are amended to comply with North Dakota law?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
NORTH DAKOTA
Sections of the FDD, the Franchise Agreement, and the Supplemental Agreements requiring that you sign a general release, estoppel or waiver as a condition of renewal and/or assignment may not be enforceable as they relate to releases of the North Dakota Franchise Investment Law.
Sections of the FDD, the Franchise Agreement, and the Supplemental Agreements requiring resolution of disputes to be outside North Dakota 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.
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.
Any section of the FDD, the Franchise Agreement, and the Supplemental Agreements requiring you to consent to liquidated damages and/or termination penalties 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.
Any sections of the FDD, the Franchise Agreement, and the Supplemental Agreements requiring you to consent to a waiver of trial by jury 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.
Any sections of the FDD, the Franchise Agreement, and the Supplemental Agreements requiring you to consent to a waiver of exemplary and punitive damages 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.
Item 17(r) of the FDD and Section 18 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, several documents are amended to comply with North Dakota law. These include the FDD itself, the Franchise Agreement, and any Supplemental Agreements. The amendments address specific clauses that may conflict with the North Dakota Franchise Investment Law.
Specifically, the amendments relate to clauses concerning general releases, estoppel, or waivers required for renewal or assignment, which may not be enforceable as they relate to releases of the North Dakota Franchise Investment Law. Additionally, clauses requiring dispute resolution outside of North Dakota or those relating to the choice of law may not be enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law and are amended accordingly.
Further amendments address clauses requiring consent to liquidated damages, termination penalties, waiver of trial by jury, or waiver of exemplary and punitive damages, as these may also not be enforceable under North Dakota law. Finally, Item 17(r) of the FDD and Section 18 of the Franchise Agreement, which disclose covenants restricting competition, are amended to further disclose that such covenants may be subject to Section 9-08-06 of the North Dakota Century Code, ensuring they are fair, just, and equitable under North Dakota law.