Where must disputes with Bens Soft Pretzels be mediated and arbitrated?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary | |
|---|---|---|---|
| o. | Franchisor’s option to purchase franchisee’s business | Section 14B | Option to purchase some or all equipment, supplies, inventory, advertising materials and any items with our logo, for cash at fair market value, exercisable up to 90 days after termination or expiration. If no agreement on fair market value, an appraiser 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 covenants during the term of the franchise | 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, nor an organization franchising a 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 agreement | Section 15B | Modification by written agreement signed by you and us. The 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). |
| w. | Choice of law | Section 15H | Except for the Federal Arbitration Act and other federal law, Indiana law applies (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–37)
What This Means (2025 FDD)
According to Bens Soft Pretzels's 2025 Franchise Disclosure Document, disputes with the company must be mediated and arbitrated in Goshen, Indiana. Specifically, all disputes (except for certain claims) must undergo mediation and arbitration in the city where Bens Soft Pretzels's headquarters is located when the proceedings occur. Currently, that location is Goshen, Indiana. This requirement is subject to state law.
This means that if a franchisee has a dispute with Bens Soft Pretzels, they will likely need to travel to Goshen, Indiana, to resolve it through mediation or arbitration. This could involve significant travel expenses and time away from their business. Franchisees should factor these potential costs into their financial planning.
The FDD also states that court litigation must occur in any state or federal court of general jurisdiction over Goshen, Indiana (or where their headquarters is located when the proceedings are conducted), and that Indiana law applies, except for the Federal Arbitration Act and other federal law. This further emphasizes that Indiana is the primary legal venue for resolving disputes with Bens Soft Pretzels.