Under what circumstances is the waiver of subrogation in the Bens Soft Pretzels Sublicense agreement void?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
- All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under any applicable law that prohibits releases, estoppels or waivers of liability under such law.
NORTH DAKOTA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
Any general release the franchisee is required to assent to is not intended to nor shall it act as a release, estoppel or waiver of any liability Ben's Soft Pretzels Franchising Corporation may have incurred under the North Dakota Franchise Investment Law.
The Franchise Agreement requires the franchisee to consent to a waiver of trial by jury. That requirement will not apply to North Dakota franchisees and is deemed deleted in each place it appears in the Disclosure Document and Franchise Agreement.
The Franchise Disclosure Document and Franchise Agreement may require franchisees to consent to termination or liquidated damages. The Commissioner has determined this to be unfair, unjust and inequitable within the intent of the North Dakota Franchise Investment Law. This requirement will not apply to North Dakota franchisees and is deemed deleted in each place it appears in the Disclosure Document and Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 FDD, a general release or waiver of liability that a Bens Soft Pretzels franchisee is required to agree to will not be valid if it violates any applicable law that prohibits such releases or waivers. This means that if a specific law exists that prevents the enforcement of a waiver in a particular situation, the waiver will not be effective.
This protection ensures that franchisees are not unknowingly giving up rights that are legally protected. It is important for prospective franchisees to be aware of the laws in their specific jurisdiction that may affect the enforceability of waivers or releases. This ensures that Bens Soft Pretzels franchisees are not subjected to unfair or illegal waivers of liability.
For franchisees in North Dakota, the FDD includes an addendum that specifically addresses waivers and other provisions. According to the addendum, any general release that a franchisee is required to assent to is not intended to act as a release, estoppel, or waiver of any liability that Bens Soft Pretzels Franchising Corporation may have incurred under the North Dakota Franchise Investment Law. Additionally, the Franchise Agreement requires the franchisee to consent to a waiver of trial by jury, but that requirement will not apply to North Dakota franchisees and is deemed deleted in each place it appears in the Disclosure Document and Franchise Agreement. The Franchise Disclosure Document and Franchise Agreement may require franchisees to consent to termination or liquidated damages, but the Commissioner has determined this to be unfair, unjust and inequitable within the intent of the North Dakota Franchise Investment Law, so this requirement will not apply to North Dakota franchisees and is deemed deleted in each place it appears in the Disclosure Document and Franchise Agreement.