What rules govern the arbitration process between Dollar Rent A Car and its franchisees?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
-
- 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.
- C. Restriction on Forum: Requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the rules governing the arbitration process between Dollar Rent A Car and its franchisees are not explicitly detailed within the provided excerpts, except for a specific addendum for franchisees in North Dakota.
Specifically, the addendum addresses concerns raised by the North Dakota Securities Commissioner regarding fairness and equity for North Dakota franchisees. One of the points considered unfair is the "Situs of Arbitration Proceedings," where franchise agreements mandate that disputes be arbitrated at a location far from the franchisee's business site. This suggests that Dollar Rent A Car's standard franchise agreement might specify an arbitration location, and North Dakota seeks to protect its franchisees from undue burden.
The addendum also notes that requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota is considered unfair. Therefore, prospective Dollar Rent A Car franchisees in states other than North Dakota should carefully review the franchise agreement to understand the location and jurisdiction applicable to arbitration proceedings, as these factors can significantly impact the cost and convenience of resolving disputes. It would be prudent to discuss these specific terms with Dollar Rent A Car during the due diligence process to fully understand the implications.