Which sections of the Precision Door Service Franchise Agreement are 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 FDD, the specific sections of the Franchise Agreement amended by the addendum vary depending on the state where the franchise is located. For instance, in North Dakota, Section 7.2 regarding covenants not to compete is amended, with a note that such covenants are generally unenforceable in the state. Additionally, Sections 13.1 and 13.2, concerning governing law and venue, are amended to ensure that North Dakota law applies and any claims are litigated in North Dakota. Section 13.3, which deals with waiving a jury trial, is deleted entirely, 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 specify that the agreement will be governed by Rhode Island law. Section 13.2 is also amended to ensure that any claim arising under the Rhode Island Franchise Investment Act is litigated in Rhode Island. Furthermore, Section 14.G.1, concerning applicable law and waiver, and Section 14.H, regarding venue, are amended to state that any provision restricting jurisdiction or venue to a forum outside Rhode Island or requiring the application of laws from another state is void for claims enforceable under the Rhode Island Franchise Investment Act.
In Illinois, the Development Agreement is amended to ensure Illinois law governs the franchise agreements. Any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may still take place outside the state. The franchisee's rights upon termination and non-renewal are governed by sections 19 and 20 of the Illinois Franchise Disclosure Act, and any condition requiring a waiver of compliance with the Illinois Franchise Disclosure Act or other Illinois law is void. These amendments ensure that the franchise agreement complies with the specific franchise laws of each state, providing franchisees with the protections afforded by those laws.