Does the Bens Soft Pretzels franchise agreement include a waiver of punitive damages?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement includes a waiver of exemplary and punitive damages. That requirement will not apply to North Dakota franchisees and is deemed deleted in each place it appears in the Disclosure Document and Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the franchise agreement does include a waiver of exemplary and punitive damages. However, this waiver does not apply to franchisees in North Dakota. For North Dakota franchisees, this requirement is specifically deemed deleted from both the Disclosure Document and the Franchise Agreement. This means that while most franchisees may be restricted from seeking punitive damages, those in North Dakota retain the right to do so under the North Dakota Franchise Investment Law.
This addendum for North Dakota franchisees also addresses other clauses within the standard Bens Soft Pretzels franchise agreement. These clauses, which are waived for North Dakota franchisees, include consent to jurisdiction of courts outside North Dakota, application of laws of a state other than North Dakota, and consent to a waiver of trial by jury. These waivers are deemed invalid for franchisees operating in North Dakota.
For prospective franchisees outside of North Dakota, it is important to understand that the waiver of exemplary and punitive damages in the franchise agreement means they are giving up the right to seek such damages in disputes with Bens Soft Pretzels. This could limit the potential financial recovery in legal actions against the franchisor. Franchisees should consult with a legal professional to fully understand the implications of this waiver and how it may affect their rights and remedies.