In the event of a dispute, can a B Bops franchisee demand arbitration?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 Franchisee 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; (iii) the validity of this Agreement or any other agreement between the parties; or (iv) any operating policy or procedure of the Licensed System shall, on demand of either party, be submitted to arbitration in accordance with the current commercial arbitration rules of the American Arbitration Association. Any arbitration proceeding shall 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. In the event the parties are unable to agree upon a single arbitrator, each party shall select one arbitrator and the two arbitrators so selected shall in turn select a third arbitrator and the arbitration proceeding shall be heard before the three-person panel.
The arbitrator(s) shall have the right to award or include in the award any relief deemed appropriate under the circumstances, including, without limitation, money damages (with interest on unpaid amounts from the due date), specific performance, injunctive relief and attorneys fees and
costs in accordance with Section 26(C) of this Agreement, provided that the arbitrator(s) shall not award exemplary or punitive damages. The award and decision of the arbitrator(s) shall be conclusive and binding upon all parties hereto and judgment upon the award may be entered in any court of competent jurisdiction. Each party waives any right to contest the validity and enforceability of such award. The parties agree to be bound by the provisions of any limitation on the period of time by which claims must be brought under applicable law or this Agreement. The parties further agree that, in connection with any such arbitration proceeding, each shall file any compulsory counterclaim (as defined under the Federal Rules of Civil Procedure) within thirty (30) days after the date of the filing of the claim to which it relates. This Section 27 shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.
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- RELATIONSHIP. Company and Franchisee shall not be considered as joint venturers, partners, agents or legal representatives of the other.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees have the right to demand arbitration for certain disputes. Specifically, any controversies, disputes, or claims between a franchisee and B Bops (including its affiliates, directors, officers, shareholders, agents, and employees) that arise from the franchise agreement, the relationship between the parties, the validity of the agreement, or any operating policy or procedure of the B Bops system can be submitted to arbitration if either party demands it. However, this excludes disputes related to the Licensed Marks or any confidential information or trade secrets of B Bops.
The arbitration proceedings must be conducted in Des Moines, Iowa, and heard by a single arbitrator agreed upon by both parties. If an agreement on a single arbitrator cannot be reached, each party will select an arbitrator, and those two arbitrators will then select a third to form a three-person panel. The arbitrator(s) are empowered to award appropriate relief, including money damages (with interest on unpaid amounts), specific performance, injunctive relief, and attorneys' fees and costs, but cannot award exemplary or punitive damages.
The decision of the arbitrator(s) is conclusive and binding, and both parties waive any right to contest its validity and enforceability. The parties must adhere to any legal limitations on the time frame for bringing claims and must file any compulsory counterclaims within thirty days of the initial claim. This arbitration clause remains in effect even after the termination or expiration of the franchise agreement, ensuring that disputes arising after the agreement ends can still be resolved through arbitration.