Which section of the Precision Door Service Franchise Agreement is amended by the Addendum?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum to the Development Agreement is entered into this day of, 20, between PRECISION DOOR SERVICE SPV LLC ("we", "us" or "Franchisor") and ("you" or "Developer") to amend and revise the Development Agreement as follows:
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- In recognition of the requirements of the North Dakota Franchise Investment Law, the Development Agreement for PRECISION DOOR SERVICE SPV LLC shall be amended as follows:
- (a) Section 7.2 of the Development Agreement is amended to add:
- Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota.
- (c) Section 13.1 of the Development Agreement is amended to add:
- Notwithstanding the foregoing, the Development Agreement will be governed by North Dakota law.
- (d) Section 13.2 of the Development Agreement is amended to add:
- Notwithstanding the foregoing, any claim arising under the North Dakota Franchise Investment Law shall be litigated in the State of North Dakota.
- (e) Section 13.3 of the Development Agreement regarding waiver of jury trial is deleted in its entirety.
- (f) Section 13.5 of the Development Agreement is amended to delete the waiver of the right to seek or recover punitive damages.
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- Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the North Dakota Franchise Investment Law applicable to the provisions are met independently of this Addendum. To the extent that this Addendum shall be deemed inconsistent with any terms or conditions of the Development Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern.
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- Unless expressly amended by this Addendum, all other terms of the Development Agreement remain unchanged.
IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum, understands and consents to be bound by all of its terms.
PRECISION DOOR SERVICE SPV LLC
Developer:
FOR THE STATE OF RHODE ISLAND
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, the specific sections of the Development Agreement amended by the addendum vary depending on the state where the franchise is being offered. For instance, in North Dakota, Section 7.2 is amended to address the enforceability of non-compete covenants, Sections 13.1 and 13.2 are amended to specify that North Dakota law governs the agreement and any claims arising under the North Dakota Franchise Investment Law must be litigated in North Dakota. Additionally, Section 13.3 regarding jury trial waivers is deleted, and Section 13.5 is amended to remove the waiver of the right to seek or recover punitive damages.
For Rhode Island, Section 13.1 of the Development Agreement is amended to state that the agreement will be governed by Rhode Island law, and Section 13.2 is amended to specify that any claim arising under the Rhode Island Franchise Investment Act must be litigated in Rhode Island.
For franchisees in Rhode Island, Section 14.G.1, concerning Applicable Law and Waiver, and Section 14.H, concerning Venue, are amended to ensure that any provision restricting jurisdiction or venue to a forum outside Rhode Island, or requiring the application of laws other than those of Rhode Island, is void concerning claims enforceable under the Rhode Island Franchise Investment Act. These amendments ensure compliance with state-specific franchise laws and protect the franchisee's rights within those jurisdictions. The addendum also clarifies that unless expressly amended, all other terms of the Development Agreement remain unchanged.