Which state's laws govern the enforcement and construction of the Bens Soft Pretzels sublease?
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)
Based on the 2025 Franchise Disclosure Document, the North Dakota Addendum to the Bens Soft Pretzels Franchise Disclosure Document states that any provision requiring franchisees to consent to the application of laws of a state other than North Dakota is void. It also states that the laws of the State of North Dakota will govern any dispute. This applies to the Franchise Agreement, meaning that for franchisees in North Dakota, the construction and enforcement of the sublease will be governed by North Dakota law, regardless of what the standard franchise agreement says.
This addendum is specific to North Dakota franchisees, superseding any conflicting terms in the standard Bens Soft Pretzels franchise agreement. This ensures that North Dakota franchisees' rights are protected under North Dakota law, particularly concerning jurisdiction, choice of law, and dispute resolution.
For prospective franchisees outside of North Dakota, the standard terms of the Bens Soft Pretzels franchise agreement would apply, potentially subjecting them to the laws and jurisdiction of a state other than their own. Therefore, it is essential for potential franchisees to carefully review the franchise agreement and any state-specific addenda to understand which laws govern the agreement and where disputes would be resolved.