Does the B Bops franchise agreement allow for arbitration of disputes related to intellectual property?
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
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchise agreement does not allow for arbitration of disputes related to intellectual property. Specifically, controversies, disputes, or claims related to or based on the Licensed Marks or any confidential information or trade secrets of B Bops are excluded from arbitration.
Instead, B Bops requires that all other controversies, disputes, or claims between the franchisee and B Bops, its affiliates, and their respective directors, officers, shareholders, agents, and employees, be submitted to arbitration if either party demands it. This includes disputes arising out of or related to the agreement, the relationship of the parties, the validity of the agreement, or any operating policy or procedure of the Licensed System.
The arbitration proceedings must be conducted in Des Moines, Iowa, and be heard by one arbitrator agreed upon by both parties. If the parties cannot agree on a single arbitrator, each party will select one arbitrator, and those two arbitrators will then select a third to form a three-person panel. The arbitrator(s) can award any relief deemed appropriate, excluding exemplary or punitive damages. The decision of the arbitrator(s) is conclusive and binding, and judgment upon the award may be entered in any court of competent jurisdiction.