Is dispute resolution through arbitration or mediation applicable to B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| T. Integration/merger clause | Section 39 | Only the terms of the Franchise Agreement, the Operations Manual, the documents referred to in and the attachments to the Franchise Agreement are binding. Any other oral or written promises related to the subject matter of the Franchise Agreement may not be enforceable. This is not intended to disclaim any representations made in this disclosure document. | |
|---|---|---|---|
| U. Dispute resolution by | Section 27 | Except for certain claims, all disputes must | |
| arbitration or mediation | be arbitrated in Des Moines, Iowa. | ||
| V. Choice of forum2 | Section 27 | Arbitration must be commenced in the State of Iowa. | |
| W. Choice of law2 | Section 35 | Iowa law applies (subject to state law) |
| Provision | Section in Development Agreement | Summary | |---|---|---| | A. Term of development | Section 2 | To be negotiated between parties based on | | Rights | | length of development schedule | | B. Renewal or extension of the term1 | Section 2 | Any renewal to be on such terms and conditions as the Company and you may mutually agree upon expiration of the original term. | | C. Requirements for you to | None | Not applicable. | | renew or extend | | | | D. Termination by you | None | Not applicable. | | E. Termination by the Company | None | Not applicable. | | without cause1 | | | | F. Termination by the Company with "cause"1 | Section 11 | The Company can terminate if you default in performance of the Development Agreement or if certain other events occur. |
| T. Integration/merger clause | Section 26 | Only the terms of the Development Agreement, the documents referred to in and the attachments to the Development Agreement are binding. Any other oral or written promises related to the subject matter of the Development Agreement may not be enforceable. This is not intended to disclaim any representations made in this disclosure document. |
|---|---|---|
| U. Dispute resolution by arbitration or mediation | Section 17 | Except for certain claims related to use of the Licensed Marks or proprietary information, all disputes must be arbitrated in Des Moines, Iowa. |
| V. Choice of forum2 | Section 17 | Arbitration must be commenced in the State of Iowa. |
| W. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, dispute resolution through arbitration is applicable to the franchise agreement and development agreement, but not the application agreement.
For the Franchise Agreement, Section 27 states that except for certain claims, all disputes must be arbitrated in Des Moines, Iowa, and arbitration must be commenced in the State of Iowa. For the Development Agreement, Section 17 states that except for certain claims related to the use of licensed marks or proprietary information, all disputes must be arbitrated in Des Moines, Iowa, and arbitration must be commenced in the State of Iowa.
However, for the Application Agreement, the FDD states that dispute resolution through arbitration or mediation is not applicable. This means that any disputes arising from the Application Agreement would likely be resolved through traditional legal channels, such as court proceedings, rather than through arbitration or mediation.
It is important for a prospective B Bops franchisee to understand which agreement governs the specific dispute, as this will determine whether arbitration is required. Franchisees should consult with a legal professional to fully understand their rights and obligations regarding dispute resolution under each of these agreements.