What claims cannot be waived by a Pearce Bespoke franchisee in North Dakota?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, several claims cannot be waived by a franchisee in North Dakota due to the North Dakota Franchise Investment Law (NDFIL). Specifically, franchisees cannot be required to consent to certain conditions that limit their rights and protections under North Dakota law.

These non-waivable claims include those relating to jurisdiction, choice of law, jury trial, and exemplary or punitive damages. A Pearce Bespoke franchisee cannot be forced to consent to the jurisdiction of courts outside of North Dakota or the application of laws of a state other than North Dakota. Similarly, a franchisee cannot be compelled to waive their right to a jury trial or their right to seek exemplary and punitive damages if such waivers are prohibited by the NDFIL.

Furthermore, any release required as a condition for renewing the franchise agreement cannot be enforced if it violates the NDFIL. Franchisees also cannot be forced to consent to limitations of claims to the extent that such limitations are prohibited by the NDFIL; the statute of limitations under North Dakota law will govern such claims. Additionally, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement.

Finally, the North Dakota Securities Commissioner mandates that Pearce Bespoke defer payment of the initial franchise fee and other initial payments until the franchisor has fulfilled its pre-opening obligations under the franchise agreement. This ensures that franchisees are not required to pay fees before Pearce Bespoke has met its contractual obligations to support the franchisee's launch.