What is the governing law for arbitration of disputes involving 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 Bens Soft Pretzels Franchise Disclosure Document, the governing law for arbitration depends on the franchisee's location. For franchisees in North Dakota, the laws of North Dakota will govern any dispute. Furthermore, any mediation or arbitration will be held at a site agreeable to all parties. This stipulation overrides any clause in the standard franchise agreement that might specify a different jurisdiction or venue.
For franchisees outside of North Dakota, the FDD does not explicitly state which state's laws govern arbitration. Typically, franchise agreements include clauses specifying the governing law and venue for dispute resolution, which often favor the franchisor's home state.
Prospective franchisees should carefully review the franchise agreement and any addenda specific to their state to understand the applicable laws and procedures for dispute resolution. It would be prudent to consult with a legal professional to fully understand their rights and obligations under the agreement, especially concerning arbitration and governing law.