What happens if B Bops and the franchisee cannot agree on a single arbitrator?

According to B Bops's 2025 Franchise Disclosure Document, if the parties cannot agree on a single arbitrator, each party will select one arbitrator. Then, the two arbitrators selected by each party will choose a third arbitrator. The arbitration proceeding will then be heard before this three-person panel.

This process ensures that neither B Bops nor the franchisee has complete control over the selection of the arbitrator(s). By having each party select an arbitrator, and those two arbitrators jointly selecting a third, it aims to create a more balanced and impartial panel. This is a common approach in arbitration agreements to mitigate potential bias.

The arbitrator or panel of arbitrators has the authority to award appropriate relief, including monetary damages, specific performance, injunctive relief, and attorney's fees and costs, but cannot award exemplary or punitive damages. The decision made by the arbitrator(s) is binding, and both parties waive their right to contest the validity and enforceability of the award. This clause emphasizes the finality and enforceability of the arbitration outcome.

The arbitration process will take place in Des Moines, Iowa, regardless of where the franchisee's B Bops restaurant is located. Franchisees should consider the potential travel costs and logistical challenges of attending arbitration in Des Moines. The document also stipulates that any compulsory counterclaims must be filed within 30 days of the initial claim, which means franchisees need to act quickly if they believe B Bops has also violated the agreement.