What is the dependency for pursuing arbitration with Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer 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)
According to the 2025 FDD, any provision requiring franchisees in North Dakota 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. Therefore, any mediation or arbitration will be held at a site agreeable to all parties, and the laws of the State of North Dakota will govern any dispute.
This addendum ensures that North Dakota franchisees are not bound by certain provisions in the standard franchise agreement that may be disadvantageous under North Dakota law. It specifically addresses concerns related to jurisdiction, choice of law, and other legal aspects of the franchise relationship.
For a prospective franchisee in North Dakota, this addendum provides additional protection and ensures that disputes will be resolved within the state, under North Dakota law, and at a location agreeable to all parties involved. This can significantly reduce the costs and complexities associated with resolving disputes, as it avoids the need to travel to another state or navigate unfamiliar legal systems.