If a provision in the Itan franchise agreement requires arbitration in a remote location, what action must be taken in North Dakota?

According to Itan's 2025 Franchise Disclosure Document, provisions requiring arbitration or mediation to be held at a location remote from the franchisee's business site are generally considered unenforceable in North Dakota, as per Section 51-19-09 of the North Dakota Franchise Investment Law. This means that if the standard Itan franchise agreement stipulates a remote arbitration location, this provision is unlikely to be upheld in North Dakota.

Instead, Itan and the franchisee must agree on a suitable site within North Dakota for arbitration or mediation. This ensures that the franchisee is not unduly burdened by having to travel to a distant location to resolve disputes. This requirement is designed to protect franchisees from potential disadvantages arising from unequal bargaining power.

This modification is part of a broader set of amendments to the Itan Disclosure Document, Franchise Agreement, and Supplemental Agreements that are necessary to comply with North Dakota's franchise laws. These amendments reflect North Dakota's commitment to protecting franchisees' rights and ensuring fairness in the franchise relationship. Prospective Itan franchisees in North Dakota should carefully review these state-specific amendments to understand their rights and obligations under the franchise agreement.