Who bears the costs of arbitration for the Bens Soft Pretzels franchise agreement?

The 2025 Bens Soft Pretzels Franchise Disclosure Document includes a North Dakota addendum that modifies the standard franchise agreement regarding legal costs. Generally, the Franchise Agreement stipulates that the franchisee is responsible for covering all costs and expenses incurred by Ben's Soft Pretzels Franchising Corporation when enforcing the agreement.

However, for franchisees operating in North Dakota, this provision is altered. In North Dakota, the prevailing party in any legal dispute, including those involving the enforcement of the franchise agreement, is entitled to recover all costs and expenses. This includes attorney's fees.

This means that if a Bens Soft Pretzels franchisee in North Dakota wins a dispute against the franchisor, Ben's Soft Pretzels Franchising Corporation will be responsible for covering the franchisee's legal costs. Conversely, if Ben's Soft Pretzels wins, the North Dakota franchisee will bear the costs. This contrasts with the standard agreement where the franchisee always pays the franchisor's enforcement costs, regardless of who wins the dispute. Prospective franchisees should note that these stipulations only apply to franchisees operating within North Dakota; franchisees in other states are subject to the standard agreement.