Is the arbitrator's decision final and binding on all parties in a Bens Soft Pretzels dispute?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties agree to participate in the mediation proceedings in good faith with the intention of resolving the dispute if at all possible within 30 days of the notice from the party seeking to initiate the mediation procedures.
If not resolved within 30 days, or if one party refuses to participate in mediation as outlined herein, the parties are free to pursue arbitration.
Mediation is a compromise negotiation for purposes of the federal and state rules of evidence, and the entire process is confidential.
The parties agree that each party will pay fifty percent (50%) of the total of mediation fees and all costs associated with mediation.
- (ii) Except as provided in subsection 12.B., all disputes between you and us or any of our or your affiliates, including, without limitation, your owners and guarantors, that are not resolved through mediation as provided above must be submitted to binding arbitration under the authority of the Federal Arbitration Act and must be arbitrated in accordance with the then-current rules and procedures and under the auspices of the American Arbitration Association.
The arbitration will be heard by a single arbitrator with at least three years' experience in franchising or franchise law and must take place in the county in which our headquarters are then located (currently, Goshen, Indiana), or at such other place as may be mutually agreeable to the parties.
Any arbitration must be resolved on an individual basis and not joined as part of a class action or the claims of other parties.
The arbitrator must follow the law and not disregard the terms of this Agreement.
The decision of the arbitrator will be final and binding on all parties to the dispute; however, the arbitrators may not, under any circumstances: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; or (iii) make any award that extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, disputes that are not resolved through mediation must be submitted to binding arbitration under the Federal Arbitration Act, following the American Arbitration Association's rules. The arbitration will be conducted by a single arbitrator with at least three years of experience in franchising or franchise law. The location for arbitration is the county where Bens Soft Pretzels' headquarters is located, which is currently Goshen, Indiana, unless both parties agree to another location. The decision made by the arbitrator will be final and binding for all parties involved in the dispute.
However, there are limitations to the arbitrator's authority. The arbitrator cannot halt any pending termination of the Franchise Agreement, award punitive or exemplary damages, or make any decision that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance set by Bens Soft Pretzels. The arbitration must be resolved on an individual basis and cannot be part of a class action or joined with the claims of other parties.
For a prospective Bens Soft Pretzels franchisee, this means that any unresolved disputes will be settled through a binding arbitration process, which offers a potentially faster and more cost-effective alternative to traditional litigation. However, the franchisee should be aware of the arbitrator's limitations, particularly the inability to award punitive damages or modify the terms of the Franchise Agreement. The franchisee should also consider the potential cost of arbitrating in Goshen, Indiana, if they are located elsewhere, and the importance of attempting mediation before resorting to arbitration.