Which subparagraph is deleted from the Kitchen Solvers Franchise Agreement regarding waiver of punitive damages in North Dakota?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, Subparagraph 16.L is deleted from the Franchise Agreement for franchisees in North Dakota. This deletion specifically addresses the waiver of punitive damages, which is considered unenforceable in North Dakota. This information is found in the addendum to the Kitchen Solvers Franchise Agreement for the state of North Dakota.
For a prospective Kitchen Solvers franchisee in North Dakota, this means that the standard franchise agreement's clause that waives the franchisee's right to seek punitive damages will not apply. Punitive damages are awarded in addition to actual damages in cases where the defendant's conduct is particularly egregious or malicious.
This modification ensures that Kitchen Solvers complies with North Dakota's Franchise Investment Law, which protects franchisees' rights. It is important for potential franchisees to carefully review the addendum specific to their state to understand how the standard franchise agreement is modified to comply with local laws. This also means that Kitchen Solvers franchisees in North Dakota retain the right to pursue punitive damages if circumstances warrant, offering them greater legal protection than in states where such waivers are enforced.