Does the mediation requirement apply to disputes involving the business of the Bens Soft Pretzels franchise?
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 FDD, the North Dakota Addendum addresses mediation. For franchisees in North Dakota, any mediation or arbitration will be held at a site agreeable to all parties involved in the dispute. Furthermore, the laws of the State of North Dakota will govern any dispute, regardless of what the standard franchise agreement may state.
This addendum ensures that North Dakota franchisees are not forced to mediate or arbitrate in a location that is inconvenient or biased. It also means that disputes will be resolved under North Dakota law, which may offer different protections or interpretations compared to the laws of other states. This is particularly relevant because franchise agreements often include clauses that specify a particular jurisdiction and governing law, which could be disadvantageous to the franchisee.
For prospective Bens Soft Pretzels franchisees in North Dakota, this addendum provides a more level playing field in the event of a dispute with the franchisor. It is important for these franchisees to understand their rights under North Dakota law and to ensure that any mediation or arbitration proceedings are conducted in a fair and accessible location. Franchisees outside of North Dakota do not receive this specific protection, and are subject to the standard mediation and arbitration terms outlined in the franchise agreement.