What is the choice of forum for court litigation involving a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary | |
|---|---|---|---|
| o. | Franchisor’s option | Section 14B | Option to purchase some or all equipment, supplies, inventory, |
| to | advertising materials and any items with our logo, for cash at | ||
| purchase | fair market value, exercisable up to 90 days after termination or | ||
| franchisee’s | expiration. If no agreement on fair market value, an appraiser | ||
| business | appointed by us will decide. | ||
| p. | Death or disability of franchisee | Section 11E | You must assign franchise to an approved buyer within 180 days. All transfer provisions of section 8 of the franchise agreement apply. |
| q. | Non-competition | Section 10D | No store or food business which includes the sale of pretzels |
| covenants during | where the sale of pretzels is more than 10% of the overall | ||
| the term of the | revenue of the business, nor an organization franchising a | ||
| franchise | similar business (subject to state law). | ||
| r. | Non-competition covenants after the franchise is terminated or expires | Section 10D | No store or food business which includes the sale of pretzels where the sale of pretzels is more than 10% of the overall revenue of the business for 1 year within 5 miles of your former store location, or within 5 miles of any other BEN’S SOFT PRETZELS store. No organization franchising a similar business for 1 year. No solicitation or acceptance of business from former customers for 1 year (subject to state law). |
| s. | Modification of | Section 15B | Modification by written agreement signed by you and us. The |
| agreement | Operations Manual can be revised and modified by us. | ||
| t. | Integration/merger clause | Section 15B | Only the terms of the Franchise Agreement (including System Standards in the Operations Manual) are binding (subject to state and federal law). Any statements or promises not in the Franchise Agreement and this disclosure document and may not be enforceable. No claim made in any franchise agreement is intended to disclaim the representations made in this Franchise Disclosure Document. |
| u. | Dispute resolution by arbitration or mediation | Section 12 | Except for certain claims, all disputes must be mediated and arbitrated in the city where our headquarters is located when the proceedings are conducted, currently Goshen, Indiana (subject to state law). |
| v. | Choice of forum | Section 15I | Court litigation must be in any state or federal court of general |
| jurisdiction over Goshen, Indiana (or where our headquarters is | |||
| located when the proceedings are conducted). (subject to state | |||
| law). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 37–42)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, any court litigation must occur in a state or federal court with general jurisdiction over Goshen, Indiana, or wherever Bens Soft Pretzels's headquarters is located at the time of the proceedings. This is subject to state law.
This clause means that if a franchisee has a legal dispute with Bens Soft Pretzels that ends up in court, the franchisee will likely need to travel to Indiana, regardless of where their franchise is located. This can significantly increase the cost of litigation due to travel expenses, local counsel fees, and other logistical challenges. Franchisees should consider this when evaluating the potential costs and risks associated with investing in a Bens Soft Pretzels franchise.
Choice of forum clauses are common in franchise agreements, as they allow the franchisor to manage legal disputes in a location convenient for them. However, some states may have laws that limit or prohibit such clauses, so the "subject to state law" provision is important. Prospective franchisees should consult with an attorney to understand the implications of this clause in their specific state and to assess the overall fairness of the franchise agreement.