Are provisions requiring Mrcool North Dakota franchisees to consent to termination or liquidated damages enforceable?

According to Mrcool's 2025 Franchise Disclosure Document, provisions requiring North Dakota franchisees to consent to termination or liquidated damages are not enforceable in North Dakota. This protection is explicitly stated in the North Dakota Franchise Agreement Amendment. This amendment is applicable if the franchisee is a resident of North Dakota or if their Mrcool Center outlet will be located within the state.

Specifically, Article 16 of the Franchise Agreement is amended to include language stating that these provisions are not enforceable. Additionally, the North Dakota FDD Amendment supplements Item 6, "Other Fees," by stating that no consent to termination or liquidated damages shall be required from franchisees in the State of North Dakota.

Furthermore, Item 17 of the FDD, concerning "Renewal, Termination, Transfer and Dispute Resolution," is supplemented to indicate that any provision requiring a franchisee to consent to termination or liquidation damages has been determined to be unfair, unjust, and inequitable under Section 51-19-09 of the North Dakota Franchise Investment Law. This means that Mrcool franchisees in North Dakota are not bound by clauses that would force them to agree to termination or financial penalties in certain situations, offering them greater legal protection within the state.