Where will arbitration occur for the Bens Soft Pretzels franchise agreement?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to the North Dakota Franchise Investment Law, any provision requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to consent to the application of laws of a state other than North Dakota is void. Any mediation or arbitration will be held at a site agreeable to all parties.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the location of mediation or arbitration for franchise agreements is not explicitly detailed in the provided excerpts, but there is an exception for franchisees in North Dakota.
For North Dakota franchisees, any mediation or arbitration will be held at a site agreeable to all parties involved. This stipulation is part of an addendum to the franchise agreement that addresses specific legal considerations within North Dakota, overriding the standard terms of the franchise agreement. This ensures that North Dakota franchisees are not required to consent to jurisdictions or laws outside of North Dakota, providing them with a more localized and potentially convenient venue for dispute resolution.
For prospective franchisees outside of North Dakota, the FDD excerpts do not specify where arbitration would occur. It is important for potential franchisees to discuss this with Bens Soft Pretzels to fully understand the terms and location of potential arbitration proceedings, as this can have significant implications for the cost and convenience of resolving disputes.