For Buns On Fire franchises in North Dakota, what determines the location of any arbitration?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
NORTH DAKOTA ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provisions will supersede and apply:
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- Any provision in the Franchise Agreement which designates jurisdiction or venue or requires the Franchisee to agree to jurisdiction or venue, in a forum outside of North Dakota, is deleted from Franchise Agreements issued in the State of North Dakota. The site of any arbitration will be agreeable to all parties.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, for franchisees in North Dakota, the location of any arbitration must be agreeable to all parties involved. This stipulation supersedes any conflicting terms in the standard franchise agreement, which might otherwise designate a jurisdiction or venue outside of North Dakota. This change is part of an addendum to the franchise agreement specifically for North Dakota, acknowledging the state's Franchise Investment Law.
This requirement ensures that North Dakota Buns On Fire franchisees are not forced to participate in arbitration proceedings in distant or inconvenient locations. By mandating mutual agreement on the arbitration site, the addendum aims to protect franchisees from potential disadvantages associated with remote arbitration, such as increased travel costs or unfamiliar legal environments. This provision reflects North Dakota's regulatory stance on protecting its franchisees' rights and interests.
For a prospective Buns On Fire franchisee in North Dakota, this means they have a say in where any arbitration proceedings will take place, providing a degree of protection against potentially onerous or unfair conditions. It is important for franchisees to understand this right and to ensure that any agreement on arbitration location is genuinely agreeable to them. This clause contributes to a fairer franchising environment within North Dakota, aligning with the state's franchise laws.