What section of the B Bops Development Agreement specifies the choice of law?
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 B Bops's 2025 Franchise Disclosure Document, the section of the Development Agreement that specifies the choice of law is Section 25. This means that the Development Agreement is generally governed by Iowa law, although this is subject to applicable state law.
This "choice of law" provision is important because it determines which state's laws will be used to interpret and enforce the Development Agreement. Franchise agreements typically include these clauses to provide clarity and predictability in case of disputes. Specifying Iowa law can be beneficial for B Bops, as the franchisor, because it is familiar with Iowa's legal precedents and business environment.
However, the clause also notes that Iowa law applies "subject to state law." This acknowledges that certain aspects of the franchise relationship may be governed by the laws of the state where the franchisee operates the B Bops business, especially concerning franchise registration and relationship laws, which vary considerably from state to state. Prospective franchisees should be aware of this and understand how both Iowa law and their local state laws may affect their rights and obligations under the Development Agreement.