What section of the B Bops Development Agreement addresses dispute resolution by arbitration or mediation?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| T. Integration/merger clause | Section 26 | Only the terms of the Development Agreement, the documents referred to in and the attachments to the Development Agreement are binding. Any other oral or written promises related to the subject matter of the Development Agreement may not be enforceable. This is not intended to disclaim any representations made in this disclosure document. |
|---|---|---|
| U. Dispute resolution by arbitration or mediation | Section 17 | Except for certain claims related to use of the Licensed Marks or proprietary information, all disputes must be arbitrated in Des Moines, Iowa. |
| V. Choice of forum2 | Section 17 | Arbitration must be commenced in the State of Iowa. |
| W. Choice of law2 | Section 25 | Iowa law applies (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, Section 17 of the Development Agreement outlines the dispute resolution process through arbitration or mediation. This section specifies that, with the exception of certain claims pertaining to the use of licensed marks or proprietary information, all disputes must be resolved through arbitration in Des Moines, Iowa.
Furthermore, Section 17 also stipulates that any arbitration proceedings must be initiated within the State of Iowa. This clause designates Iowa as the exclusive forum for arbitration, meaning that franchisees must travel to Iowa to resolve disputes with B Bops, which could increase expenses.
In addition, Section 25 of the B Bops Development Agreement specifies that Iowa law will govern the interpretation and enforcement of the agreement, subject to state law. This means that Iowa's legal principles will be applied in resolving any contractual issues, potentially impacting franchisees based outside of Iowa. Prospective franchisees should be aware of these provisions and how they might affect their rights and obligations under the Development Agreement.