In which state must arbitration be commenced for disputes involving B Bops?
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 is detailed within Item 17, which addresses dispute resolution.
This means that if a franchisee has a dispute with B Bops that proceeds to arbitration, the legal proceedings will take place in Iowa, regardless of where the franchisee's business is located. This could involve travel and associated expenses for the franchisee to attend hearings, depositions, or other arbitration-related activities.
Furthermore, the FDD specifies that Iowa law applies to these disputes (subject to state law). Therefore, the laws of Iowa will govern the interpretation and enforcement of the franchise agreement, which could be different from the laws of the state where the franchisee operates their B Bops restaurant. Franchisees should consult with a legal professional to understand the implications of these provisions.