How many arbitrators will hear a dispute between B Bops and a franchisee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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, disputes between a franchisee and B Bops will be heard by either one or three arbitrators. The exact number depends on whether the parties can agree on a single arbitrator.
If B Bops and the franchisee agree on one arbitrator, that single arbitrator will hear the case. However, if they cannot agree on a single arbitrator, each party will select one arbitrator, and those two arbitrators will then select a third arbitrator. In this scenario, a three-person panel will hear the arbitration proceeding.
This arbitration process does not apply to disputes related to B Bops's Licensed Marks, confidential information, or trade secrets. The arbitration will occur in Des Moines, Iowa, and follow the American Arbitration Association's commercial arbitration rules. The arbitrator(s) can award various types of relief, including money damages, specific performance, injunctive relief, and attorney's fees, but cannot award exemplary or punitive damages.