Where must disputes with B Bops be arbitrated, according to the Franchise Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. Choice of law2 | Section 25 | Iowa law applies (subject to state law). |
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, disputes arising from the Development Agreement, except for certain claims related to the use of licensed marks or proprietary information, must be arbitrated in Des Moines, Iowa, according to Section 17 of the agreement. Furthermore, the arbitration must be commenced in the State of Iowa. This means that if a franchisee has a dispute with B Bops related to the Development Agreement (excluding those specific claims), they will be required to go through arbitration in Des Moines, Iowa.
This requirement to arbitrate in Iowa could present logistical and financial challenges for franchisees located outside of Iowa. Franchisees would need to factor in travel costs, accommodation, and potentially higher legal fees if they need to hire local counsel in Iowa. The FDD also states that Iowa law applies to the Development Agreement, subject to state law, which could also necessitate hiring counsel familiar with Iowa law.
It is important to note that these dispute resolution terms apply specifically to the Development Agreement. The Franchise Agreement also contains similar terms requiring arbitration in Des Moines, Iowa. Prospective franchisees should carefully review Item 17 of the FDD and the specific sections of both the Development Agreement and the Franchise Agreement to fully understand their rights and obligations regarding dispute resolution with B Bops.