In which state must arbitration be commenced for B Bops disputes?
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, arbitration must be commenced in the State of Iowa. This requirement applies to all disputes, except for certain claims related to the use of licensed marks or proprietary information, which must be arbitrated in Des Moines, Iowa.
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 Iowa to participate in arbitration proceedings. This could involve significant travel expenses, legal fees, and time away from their business.
The FDD also states that Iowa law applies to the agreement, subject to state law. Prospective franchisees should consult with a legal professional to understand the implications of these provisions and how they may affect their rights and obligations under the franchise agreement.