Can a Kidokinetics franchisee in North Dakota be required to waive exemplary and punitive damages?

According to Kidokinetics's 2024 Franchise Disclosure Document, any sections of the FDD, the Franchise Agreement, and the Supplemental Agreements requiring a franchisee in North Dakota 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. This means that the franchisor cannot force a franchisee to waive their right to seek exemplary or punitive damages in the event of a dispute.

This protection is afforded by North Dakota's Franchise Investment Law, which aims to safeguard franchisees' rights. Exemplary and punitive damages are typically awarded in cases where the franchisor's conduct is particularly egregious or malicious. By ensuring that franchisees retain the right to pursue these damages, the law provides an additional layer of accountability for Kidokinetics.

Prospective Kidokinetics franchisees in North Dakota should be aware of this provision and understand that they cannot be compelled to waive their right to seek exemplary and punitive damages. This could be a significant benefit in the event of a dispute with the franchisor, as it allows the franchisee to seek full compensation for any harm suffered as a result of the franchisor's actions.