What law governs all matters relating to arbitration between Dollar Rent A Car and its franchisees?
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.):
- E. Applicable Laws: Franchise agreements which specify that any claims arising under the North Dakota franchise law will be governed by the laws of a state other than North Dakota.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
The 2025 Dollar Rent A Car Franchise Disclosure Document includes a North Dakota addendum that addresses which state laws govern claims arising under North Dakota franchise law. Specifically, franchise agreements cannot specify that claims arising under North Dakota franchise law will be governed by the laws of a state other than North Dakota.
This stipulation ensures that North Dakota franchisees have the benefit of their own state's laws when resolving disputes related to their franchise agreements. This protection is in place because the North Dakota Securities Commissioner has determined that franchise agreements requiring North Dakota franchisees to be subject to laws of other states are unfair, unjust, or inequitable.
For prospective Dollar Rent A Car franchisees in North Dakota, this addendum provides an assurance that their rights under North Dakota franchise law will be protected and adjudicated within the legal framework of their own state. This can be a significant advantage, as it avoids the complexities and potential disadvantages of having to navigate the laws of a different jurisdiction.