factual

Is the arbitrator required to follow the law when resolving a Bens Soft Pretzels dispute?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer from 2025 FDD Document

NORTH DAKOTA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT

Item 17, Additional Disclosures. The following statements are added to Item 17:

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. The laws of the State of North Dakota will govern any dispute.

Source: Item 22 — CONTRACTS (FDD pages 46–47)

What This Means (2025 FDD)

Based on the 2025 FDD, the standard Franchise Agreement for Bens Soft Pretzels does not explicitly state that an arbitrator must follow the law. However, an addendum for North Dakota franchisees addresses the governing law for disputes.

Specifically, the North Dakota addendum stipulates that any provision requiring franchisees to consent to the application of laws of a state other than North Dakota is void. It further states that the laws of the State of North Dakota will govern any dispute. This implies that for North Dakota franchisees, an arbitrator would be bound to apply North Dakota law.

For franchisees outside of North Dakota, the FDD does not provide explicit guidance on whether the arbitrator is required to follow the law. Prospective franchisees should seek clarification from Bens Soft Pretzels regarding the rules and procedures that govern arbitration, including whether arbitrators are required to apply relevant state and federal laws. Understanding this aspect is crucial, as it determines the legal framework within which disputes will be resolved.

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.