Where will mediation or arbitration be held for Bens Soft Pretzels franchisees in North Dakota?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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, for franchisees in North Dakota, the location of any mediation or arbitration will be at a site that is agreeable to all parties involved. This stipulation is part of an addendum to the standard franchise agreement that specifically addresses North Dakota franchise law.
This means that unlike the standard Bens Soft Pretzels franchise agreement, which may specify a particular location for dispute resolution (likely Indiana, where the company is based), North Dakota franchisees have the right to negotiate a mutually acceptable location for mediation or arbitration. This could potentially save the franchisee travel costs and other expenses associated with resolving disputes.
This addendum reflects North Dakota's franchise investment law, which aims to protect franchisees by ensuring certain provisions in franchise agreements are fair and equitable under North Dakota law. Prospective franchisees in North Dakota should carefully review this addendum and understand their rights regarding dispute resolution, as it modifies the standard terms of the Bens Soft Pretzels franchise agreement.