Who is required to attend the mediation session for a Bens Soft Pretzels dispute?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD 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)
The 2025 Franchise Disclosure Document for Ben's Soft Pretzels includes an addendum specific to North Dakota franchisees. According to this addendum, any mediation or arbitration related to a dispute will be held at a location that is agreeable to all parties involved. This stipulation overrides any clause within the standard franchise agreement that might require franchisees to consent to the jurisdiction of courts outside of North Dakota or to adhere to laws of a state other than North Dakota.
For prospective Ben's Soft Pretzels franchisees in North Dakota, this means they have the right to negotiate a mutually convenient location for any mediation or arbitration proceedings. This provision aims to protect franchisees from potentially burdensome or unfair legal proceedings in distant locations.
It is important to note that this protection applies specifically to franchisees operating in North Dakota, as it is governed by the North Dakota Franchise Investment Law. Franchisees in other states may be subject to different requirements regarding dispute resolution and jurisdiction.