What section of the B Bops Franchise Agreement addresses dispute resolution by arbitration or mediation?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| T. Integration/merger clause | Section 39 | Only the terms of the Franchise Agreement, the Operations Manual, the documents referred to in and the attachments to the Franchise Agreement are binding. Any other oral or written promises related to the subject matter of the Franchise Agreement may not be enforceable. This is not intended to disclaim any representations made in this disclosure document. |
|---|---|---|
| U. Dispute resolution by | Section 27 | Except for certain claims, all disputes must |
| arbitration or mediation | be arbitrated in Des Moines, Iowa. | |
| V. Choice of forum2 | Section 27 | Arbitration must be commenced in the State of Iowa. |
| W. Choice of law2 | Section 35 | 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, Section 27 of the Franchise Agreement outlines the dispute resolution process through arbitration or mediation. Specifically, Item 17, subsection U indicates that, with the exception of certain claims, all disputes must be arbitrated in Des Moines, Iowa. Furthermore, Item 17, subsection V clarifies that the arbitration proceedings must commence in the State of Iowa.
This means that if a B Bops franchisee has a dispute with the franchisor, they will generally be required to resolve it through arbitration rather than by filing a lawsuit in court. The arbitration will take place in Des Moines, Iowa, regardless of where the franchisee's restaurant is located. This could potentially increase costs for the franchisee, as they may need to travel to Iowa for the arbitration hearings.
It is important to note the exception for certain claims. According to the Development Agreement, disputes related to the use of licensed marks or proprietary information are excluded from the arbitration requirement. The FDD does not specify what types of claims are excluded from the arbitration requirement within the Franchise Agreement. A prospective franchisee should seek clarification from B Bops regarding the specific types of claims that are subject to arbitration and those that may be pursued in court.
The choice of law provision in Section 35 specifies that Iowa law will govern the interpretation and enforcement of the Franchise Agreement, subject to state law. This means that the arbitrator will apply Iowa law to resolve any disputes between B Bops and the franchisee. Franchisees should be aware of the legal implications of these provisions and consult with an attorney to understand their rights and obligations under the Franchise Agreement.