Where is the specific location for arbitration required for disputes related to the B Bops Franchise Agreement?
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. |
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, disputes arising from the Franchise Agreement, except for certain claims, must be arbitrated in Des Moines, Iowa. The arbitration proceedings must be commenced in the State of Iowa, as detailed in Section 27 of the agreement.
This means that if a franchisee has a dispute with B Bops that cannot be resolved through other means, the franchisee will likely need to travel to Des Moines, Iowa, to participate in arbitration. This could involve significant travel expenses, legal fees, and time away from their business. Franchisees should factor these potential costs into their decision when considering investing in a B Bops franchise.
It is important to note that this requirement may not apply to all franchisees, particularly those governed by Minnesota law. The FDD states that certain provisions, including those related to dispute resolution, shall not reduce any rights provided under Minnesota Statutes, Chapter 80C. Therefore, prospective franchisees in Minnesota should carefully review their rights under state law and consult with an attorney to understand how the arbitration clause may affect them.