Where will arbitration proceedings be conducted for B Bops disputes?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- ARBITRATION. Except for controversies, disputes or claims related to or based on the Licensed Marks or any confidential information or trade secrets of Company, all controversies, disputes or claims between Developer and Company, its affiliates and their respective directors, officers, shareholders, agents and employees arising out of or related to (i) this Agreement or any other agreement between the parties; (ii) the relationship of the parties hereto; or (iii) the validity of this Agreement or any other agreement between the parties shall, on the demand of either party, be submitted to arbitration in accordance with the current commercial arbitration rules of the American Arbitration Association. Any arbitration proceedings should be conducted in Des Moines, Iowa and shall be heard by one arbitrator, the identity of whom shall be agreed upon in advance by the parties
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, arbitration proceedings between the developer and B Bops will be conducted in Des Moines, Iowa. This applies to all controversies, disputes, or claims arising out of or related to the Development Agreement, any other agreement between the parties, the relationship between the parties, or the validity of any agreement between the parties. However, this does not include disputes related to the Licensed Marks or any confidential information or trade secrets of B Bops.
This means that if a B Bops developer has a dispute with the company that isn't related to trademarks or trade secrets, they will likely need to travel to Des Moines, Iowa, to resolve it through arbitration. Arbitration is a form of alternative dispute resolution where a neutral third party hears both sides of a case and makes a binding decision. This can be more efficient and less expensive than going to court, but it also means giving up the right to a jury trial.
For a prospective B Bops developer, this clause highlights the importance of understanding the legal implications of the Development Agreement and the potential costs associated with resolving disputes. It is advisable to consult with an attorney to fully understand the arbitration process and its implications. Also, keep in mind that the arbitrator can award money damages, specific performance, injunctive relief, and attorneys' fees and costs, but cannot award exemplary or punitive damages.