Does the waiver of punitive damages apply to Zoomin Groomin franchisees in North Dakota?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Waiver of Exemplary & Punitive Damages: Any waiver of punitive damages will not apply to North Dakota Franchisees.
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, any waiver of punitive damages will not apply to Zoomin Groomin franchisees operating in North Dakota. This means that franchisees in North Dakota retain the right to seek punitive damages in disputes, regardless of any general waiver clauses in the franchise agreement.
This protection is specific to North Dakota, as franchise laws vary by state. The FDD includes addenda that modify certain terms of the agreement to comply with state-specific regulations. For example, North Dakota also mandates that the franchisor defer collection of the initial franchise fee until all initial obligations are fulfilled and the franchisee has commenced business operations.
Prospective Zoomin Groomin franchisees in North Dakota should be aware of these state-specific protections, as they can significantly impact their rights and obligations under the franchise agreement. It is advisable to consult with a legal professional to fully understand the implications of these provisions.