factual

Which state's law governs the Zoomin Groomin franchise agreement in North Dakota?

Zoomin_Groomin Franchise · 2025 FDD

Answer from 2025 FDD Document

As to franchises governed by the North Dakota franchise laws, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.

Restrictive Covenants: To the extent that covenants not to compete apply to periods after the term of the franchise agreement, they are generally unenforceable under North Dakota law.

Applicable Laws: North Dakota law will govern the franchise agreement.

Waiver of Trial by Jury: Any waiver of a trial by jury will not apply to North Dakota Franchises.

Jurisdiction and Venue: The provisions concerning choice of law and jurisdiction and venue are hereby deleted and in their place is substituted the following language:

"You agree to bring any claim against us, including our present and former employees, agents, and affiliates, which in any way relates to or arises out of this Agreement, or any of the dealings of the parties hereto, solely in arbitration before the American Arbitration Association."

Waiver of Exemplary & Punitive Damages: Any waiver of punitive damages will not apply to North Dakota Franchisees.

General Release: Any requirement that the franchisee sign a general release upon renewal of the franchise agreement does not apply to franchise agreements covered under North Dakota law.

Enforcement of Agreement: Any requirement in the Franchise Agreement that requires the franchisee to pay all costs and expenses incurred by the franchisor in enforcing the agreement is void. Instead, the prevailing party in any enforcement action is entitled to recover all costs and expenses including attorney's fees.

Item 17(u) of the Disclosure Document is modified to provide that the site of mediation and arbitration shall be agreeable to all parties and may not be remote from the franchisee's place of business.

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)

What This Means (2025 FDD)

According to Zoomin Groomin's 2025 Franchise Disclosure Document, the franchise agreement for franchises governed by North Dakota franchise laws will be subject to North Dakota law. This means that the interpretation and enforcement of the franchise agreement for Zoomin Groomin locations in North Dakota will be based on North Dakota's legal principles and statutes.

This stipulation is important for prospective franchisees in North Dakota because it ensures that their franchise agreement is interpreted under the laws of their state, potentially offering them certain protections and rights specific to North Dakota. It also means that any legal disputes related to the franchise agreement would likely be resolved within the North Dakota legal system.

However, the FDD also notes several specific modifications and exceptions to standard franchise agreement terms for North Dakota franchisees. These include restrictions on non-compete covenants, jury trial waivers, punitive damage waivers, general releases upon renewal, and enforcement cost provisions. Prospective franchisees should carefully review these modifications to understand how North Dakota law alters the standard Zoomin Groomin franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.