Under what authority must disputes that are not resolved through mediation be submitted for Bens Soft Pretzels?
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 FDD, for franchisees in North Dakota, any disputes that are not resolved through mediation will be governed by the laws of the State of North Dakota. Additionally, any mediation or arbitration will be held at a site agreeable to all parties.
This addendum modifies the standard franchise agreement to comply with North Dakota law, which generally voids provisions 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. This ensures that North Dakota franchisees have the benefit of their local laws and a more convenient venue for dispute resolution.
Prospective franchisees outside of North Dakota should refer to the franchise agreement for details on dispute resolution, as the North Dakota addendum specifically applies only to franchisees operating within that state.