factual

How many arbitrators will hear the arbitration proceedings for B Bops?

B_Bops Franchise · 2025 FDD

Answer from 2025 FDD Document

Any arbitration proceedings should 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.

Source: Item 23 — RECEIPTS (FDD pages 53–145)

What This Means (2025 FDD)

According to B Bops's 2025 Franchise Disclosure Document, arbitration proceedings will be heard by either one or three arbitrators. The document specifies that any arbitration proceedings should be conducted in Des Moines, Iowa. Initially, the parties involved (B Bops and the franchisee) are expected to agree on a single arbitrator.

However, if B Bops and the franchisee cannot agree on a single arbitrator, the process changes. In this case, each party will select one arbitrator, and then the two arbitrators selected by each side will choose a third arbitrator. This results in a three-person panel to hear the arbitration proceeding.

This process ensures that both parties have a say in the selection of the arbitrator(s). Having a panel of three arbitrators, while potentially more costly and time-consuming, can provide a more balanced and thorough review of the dispute, as each arbitrator may bring a different perspective and area of expertise to the proceedings. Franchisees should consider the potential for needing to utilize either arbitration method when evaluating the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.