For Mrcool franchisees in North Dakota, are covenants requiring consent to the jurisdiction of courts outside of North Dakota always enforceable?

According to Mrcool's 2025 Franchise Disclosure Document, if you are a franchisee in North Dakota, covenants requiring you to consent to the jurisdiction of courts outside of North Dakota may not be enforceable. This means that a North Dakota Mrcool franchisee might not always be forced to resolve legal disputes in a court located outside of North Dakota. This protection is due to the North Dakota Franchise Investment Law.

This amendment to the Mrcool franchise agreement recognizes the specific protections afforded to franchisees under North Dakota law. It indicates that certain provisions that might otherwise compel a franchisee to litigate or resolve disputes in a different jurisdiction may not be upheld in North Dakota. This is a significant benefit for franchisees as it allows them to handle legal matters within their own state, potentially reducing costs and increasing convenience.

For a prospective Mrcool franchisee in North Dakota, this provision offers a degree of legal security. It suggests that the franchisee will not automatically be subjected to the laws and legal processes of another state, which could be unfamiliar or burdensome. However, the FDD uses the language "may not be enforceable," so franchisees should seek legal counsel to fully understand their rights and obligations under both the franchise agreement and North Dakota law.