What law governs matters relating to arbitration for a Dollar Rent A Car franchise?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO DOLLAR RENT A CAR, INC. DISCLOSURE DOCUMENT FOR THE STATE OF NORTH DAKOTA
In recognition of the requirements of the North Dakota Franchise Investment Law, N.D. Cent. Code, §§ 51-19-01 through 51-19-17, and the policies of the office of the State of North Dakota Securities Commission, the Franchise Disclosure Document for DOLLAR RENT A CAR, INC. shall be amended by the addition of the following language:
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- The North Dakota Securities Commissioner has held the following to be unfair, unjust, or inequitable to North Dakota franchisees (Section 51-19-09, N.D.C.C.):
- 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 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
The 2025 Dollar Rent A Car Franchise Disclosure Document includes an addendum specific to North Dakota franchisees that addresses arbitration proceedings. According to the North Dakota Securities Commissioner, it is considered unfair and inequitable for Dollar Rent A Car franchise agreements to mandate that franchisees arbitrate disputes at a location far from their business's physical site.
This stipulation is based on the North Dakota Franchise Investment Law, N.D. Cent. Code, §§ 51-19-01 through 51-19-17, and the policies of the North Dakota Securities Commission. The law aims to protect franchisees in North Dakota from being subjected to arbitration terms that could place them at a disadvantage due to geographical constraints.
For prospective Dollar Rent A Car franchisees in North Dakota, this means that the franchise agreement cannot force them to arbitrate disputes in a location that is unreasonably distant from their business. This protection ensures that franchisees are not unduly burdened by travel costs and logistical challenges when resolving disputes with Dollar Rent A Car.