factual

Does the mediation requirement apply to disputes involving the relationship between Bens Soft Pretzels and the franchisee?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer 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 mediation or arbitration location will be agreeable to all parties in North Dakota. Specifically, the North Dakota Addendum to the Franchise Disclosure Document states that 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. The laws of the State of North Dakota will govern any dispute.

This means that for franchisees operating in North Dakota, any required mediation or arbitration must occur at a location that is mutually acceptable to both Bens Soft Pretzels and the franchisee. This addendum ensures that North Dakota franchisees are not forced to travel out of state for dispute resolution or be subject to laws that are not those of North Dakota.

It is important to note that this protection is specifically for franchisees in North Dakota, as indicated by the North Dakota Addendum. Franchisees in other states may be subject to different terms regarding dispute resolution, including mandatory arbitration or mediation locations and governing laws as specified in the standard franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.