What article of the Mrcool Franchise Agreement addresses provisions requiring North Dakota franchisees to sign a general release upon renewal?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Article 15 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to sign a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota."
Article 16 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota Franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."
Articles 6 and 17 of the Franchise Agreement are hereby amended by the addition of the following language: "Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota."
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Article 15 of the Franchise Agreement is amended to state that provisions requiring North Dakota franchisees to sign a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota. This amendment is made in recognition of the North Dakota Franchise Investment Law, Section 51-19.
This means that Mrcool franchisees in North Dakota are not required to sign a general release when renewing their Franchise Agreement. A general release typically involves waiving certain rights or claims against the franchisor. This amendment protects the franchisee from being forced to give up potential legal rights as a condition of renewing their franchise.
Additionally, Item 17 of the North Dakota FDD Amendment supplements that any provision requiring a franchisee to sign a general release upon renewal of the Franchise Agreement has been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. This reinforces the protection for North Dakota franchisees, ensuring they are not subjected to potentially unfair or inequitable conditions upon renewal.