What is the purpose of the Kitchen Solvers Franchise Agreement addendum for the state of North Dakota?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO KITCHEN SOLVERS® FRANCHISE AGREEMENT FOR THE STATE OF NORTH DAKOTA
This Addendum pertains to franchises sold in the State of North Dakota and is for the purpose of complying with North Dakota statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended to include the following:
In any legal action or arbitration involving a franchise purchased in the state of North Dakota, the prevailing party is entitled to recover all costs and expenses, including attorneys' fees.
This section shall not in any way abrogate or reduce any rights of the Franchisee as provided for in the North Dakota Franchise Investment Law, including the right to a trial by jury and the right to submit matters to the jurisdiction of the Courts of North Dakota.
Covenants not to compete such as those mentioned in Subparagraphs 12.B and 14.C.1(g) of the Franchise Agreement are generally considered unenforceable in the State of North Dakota.
Pursuant to the North Dakota Franchise Investment Law, any provision requiring franchisees to consent to the jurisdiction of courts outside of North Dakota or to consent to the application of laws of a state other than North Dakota is void, provided that the Franchise Agreement may provide for arbitration in a forum outside of North Dakota.
Pursuant to Section 51-19-09 of the North Dakota Franchise Investment Law, any provision in a franchise agreement requiring franchisee to consent to a limitation of claims within one year is void.
Section 13.C of the Franchise Agreement is amended to provide that the statute of limitations under North Dakota law will apply.
Subparagraph 16.K is hereby deleted from the Franchise Agreement, as a waiver of all rights to a trial by jury is considered unenforceable in the State of North Dakota.
Subparagraph 16.L is hereby deleted from the Franchise Agreement, as a waiver of punitive damages is considered unenforceable in the State of North Dakota.
Pursuant to Section 51-19-09 of the North Dakota Franchise Investment Law, any release the franchisee is required to assent to shall not apply to any liability Franchisor may have under the North Dakota Franchise Investment Law.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the addendum to the franchise agreement for North Dakota franchises is to ensure compliance with North Dakota statutes and regulations. This addendum modifies specific provisions of the standard Kitchen Solvers Franchise Agreement to align with North Dakota law.
Specifically, the addendum addresses several key legal aspects relevant to franchising in North Dakota. It ensures that the prevailing party in any legal action or arbitration is entitled to recover all costs and expenses, including attorneys' fees. It clarifies the enforceability of non-compete covenants, which are generally considered unenforceable in North Dakota. The addendum also addresses jurisdiction and choice of law, stating that provisions requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to the application of laws of a state other than North Dakota are void, although arbitration outside of North Dakota is permitted.
Furthermore, the addendum addresses limitations on claims, jury trial waivers, and waivers of punitive damages, ensuring that these aspects of the Franchise Agreement comply with North Dakota law. It also clarifies that any release required of the franchisee does not apply to liabilities the franchisor may have under the North Dakota Franchise Investment Law. By including this addendum, Kitchen Solvers aims to provide a franchise agreement that is fully compliant with North Dakota's specific legal requirements, protecting both the franchisor and the franchisee.