For Noodles & Company, where will the mediation proceedings be conducted if mediation is required?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to the North Dakota Franchise Investment Law, any provision requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to consent to the application of laws of a state other than North Dakota is void. Further, any provision requiring franchisees to agree to the arbitration or mediation of disputes at a location that is remote from the franchisee's business has been deemed unfair, unjust, or inequitable by the North Dakota Securities Commissioner. Accordingly, the site of arbitration or mediation must be agreeable to all parties.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the location of mediation or arbitration proceedings is subject to specific stipulations for franchisees in North Dakota. The FDD states that any requirement for franchisees to participate in mediation or arbitration at a location far from their business is considered unfair under North Dakota law. Therefore, the mediation site must be mutually agreeable to all parties involved. This addendum modifies the standard franchise agreement to comply with North Dakota's Franchise Investment Law.
This stipulation primarily protects Noodles & Company franchisees operating in North Dakota. It ensures they are not forced to travel significant distances or bear excessive costs to resolve disputes through mediation or arbitration. The necessity for a mutually agreeable location aims to balance the interests of both the franchisor and the franchisee, preventing undue burden on the franchisee.
For prospective Noodles & Company franchisees in North Dakota, this means they have the right to negotiate a convenient and fair location for any required mediation or arbitration proceedings. This provision offers a degree of protection against potentially onerous or biased dispute resolution processes, ensuring that the franchisee's interests are considered in determining the location of such proceedings. Franchisees should ensure that this right is clearly understood and asserted if a dispute arises.