Under what circumstances are requirements to consent to out-of-state jurisdiction, laws, or waiver of jury trial or damages inapplicable to a Pearce Bespoke franchise in North Dakota?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, certain provisions that might typically be included in a franchise agreement are amended to align with North Dakota law, specifically the North Dakota Franchise Investment Law (NDFIL).

Specifically, any requirement that a Pearce Bespoke franchisee in North Dakota consent to (i) the jurisdiction of courts outside of North Dakota, (ii) the application of laws of a state other than North Dakota, (iii) waiver of jury trial or (iv) waiver of exemplary and punitive damages will not apply if it is prohibited by the NDFIL. This means that Pearce Bespoke cannot enforce these types of clauses against a franchisee to the extent that they conflict with North Dakota law.

This protection is conditional. The jurisdictional requirements of the NDFIL must be met, and the specific provisions in the Franchise Disclosure Document and Franchise Agreement must be inconsistent with the NDFIL for these amendments to take effect. This ensures that North Dakota franchisees are not forced to litigate disputes in other states, are subject to North Dakota law, and retain their rights to a jury trial and certain damages, as protected by North Dakota law.