What specific sections of The Standardx Franchise Agreement have additional language added regarding liquidated damages due to North Dakota Franchise Investment Law?

According to The Standardx's 2025 Franchise Disclosure Document, Item 18 includes specific references to North Dakota law regarding liquidated damages. The document states that the Commissioner has determined termination or liquidated damages to be unfair, unjust, and inequitable under Section 51-19-09 of the North Dakota Franchise Investment Law. However, The Standardx and the franchisee agree to enforce these provisions to the extent the law allows.

Specifically, the "Remarks" column in the Item 6 chart of the Franchise Disclosure Document has additional language for the rows titled "Royalty fee upon termination," "Liquidated damages upon condemnation," and "Liquidated damages upon termination." This additional language reiterates the Commissioner's stance on termination or liquidated damages under North Dakota law and the agreement to enforce these provisions as much as legally permissible.

This means that while The Standardx includes provisions for liquidated damages, their enforceability in North Dakota is limited by state law. A prospective franchisee in North Dakota should be aware that the franchisor will attempt to enforce these clauses to the fullest extent possible, but the state's Franchise Investment Law offers some protection against what it deems unfair or inequitable damage claims. It would be prudent for potential franchisees to consult with a legal expert to understand the specific implications of these clauses in North Dakota.