factual

If a Bojangles franchise agreement requires arbitration, what does the North Dakota Securities Commissioner consider unfair regarding the location of those proceedings for North Dakota franchisees?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

  • B.

Situs of Arbitration Proceedings: Franchise agreements providing that the parties must agree to arbitrate disputes at a location that is remote from the site of the franchisee's business.

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

According to Bojangles's 2025 Franchise Disclosure Document, the North Dakota Securities Commissioner considers it unfair, unjust, or inequitable if Bojangles's franchise agreements require North Dakota franchisees to arbitrate disputes at a location that is remote from the site of the franchisee's business. This position is outlined in the addendum to the franchise agreement required for North Dakota franchisees.

This stipulation means that Bojangles cannot force a franchisee in North Dakota to travel to a distant location for arbitration proceedings. The intent is to protect franchisees from undue burden and expense that could arise from having to arbitrate far from their business location. This ensures that arbitration, if required, is conducted in a place that is reasonably accessible for the franchisee.

For a prospective Bojangles franchisee in North Dakota, this is a beneficial protection. It limits the potential for Bojangles to use the arbitration location as a means of gaining an advantage in dispute resolution. Franchisees should confirm that the franchise agreement includes the necessary addendum reflecting this protection under North Dakota law.

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.