When does a limitation of claims not apply to a Pearce Bespoke franchise in North Dakota?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, a requirement that a franchisee consent to a limitation of claims does not apply if it is prohibited by the North Dakota Franchise Investment Law (NDFIL). In such cases, the statute of limitations under North Dakota law will govern. This provision is designed to protect franchisees from unfair contractual limitations on their legal rights.

This means that Pearce Bespoke franchisees in North Dakota may have greater legal recourse than franchisees in other states if the standard franchise agreement contains limitations of claims that are inconsistent with North Dakota law. The NDFIL aims to ensure a fairer balance of power between the franchisor and franchisee.

For a prospective Pearce Bespoke franchisee in North Dakota, this addendum offers a degree of protection against potentially restrictive clauses in the franchise agreement. It is important to consult with a legal professional to fully understand the implications of the NDFIL and how it affects the franchisee's rights and obligations. Franchisees should be aware of the specific statutes of limitations under North Dakota law that would apply in the absence of the contractual limitation.