Under what conditions is the Punch King Fitness Addendum effective?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
the North Dakota Franchise Investment Law:
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- Any provision of this Agreement restricting jurisdiction or venue to a forum outside the State of North Dakota or requiring the application of the laws of a state other than North Dakota is void.
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- Section 15.1 is amended by the addition of the following sentence:
"Covenants not to compete such as the one described above are generally considered unenforceable in the State of North Dakota."
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- The final two paragraphs of provision XXI(B) are hereby deleted.
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- Section XXIII(D) does not apply to any action to enforce any liability created by the Minnesota Franchise Law. Any claim arising under the Minnesota Franchise Law may be brought in the state of North Dakota.
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- The parties are signing this addendum simultaneously with the Franchise Agreement to which it is attached.
PUNCH KING FITNESS, INC. BUSINESS ORGANIZATION FRANCHISEE: INDIVIDUAL FRANCHISEE: INDIVIDUAL FRANCHISEE:
RHODE ISLAND ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following additional disclosures are required by the Rhode Island Franchise Investment Act:
A condition, stipulation, or provision requiring a franchise to waive compliance with or relieving a person of a duty or liability imposed by or a right provided by this act or a rule or order under this act is void.
A provision is a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this act.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to the 2024 Punch King Fitness Franchise Disclosure Document, the addenda included are effective under specific conditions related to state laws. For instance, the Rhode Island Addendum to the Franchise Disclosure Document addresses stipulations that waive compliance or relieve a person of duty under the Rhode Island Franchise Investment Act, rendering such provisions void. It also voids provisions restricting jurisdiction or venue to outside Rhode Island or requiring the application of other states' laws for claims enforceable under the Act. Similarly, the Rhode Island Addendum to the Franchise Agreement amends the agreement to comply with the same Act, ensuring that general releases do not apply to claims under the Act and that out-of-state jurisdiction or choice of law provisions are void for claims enforceable under the Act.
The Virginia Addendum to the Franchise Disclosure Document adds statements to Item 17.h, noting that under the Virginia Retail Franchising Act, it is unlawful to cancel a franchise without reasonable cause. It clarifies that if any default or termination grounds in the development agreement do not constitute "reasonable cause" as defined by Virginia law, those provisions may not be enforceable. This ensures that Punch King Fitness franchisees in Virginia are protected against unwarranted franchise cancellations.
In practical terms, these addenda modify the standard franchise agreement to comply with specific state laws, providing additional protections to franchisees in those states. Prospective Punch King Fitness franchisees should carefully review the addendum (if any) for their state to understand their rights and obligations under local laws, as these addenda can significantly alter the terms of the franchise agreement.