In what 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. |
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 franchise is located. This could involve travel and associated costs for the franchisee to attend hearings, depositions, or other arbitration-related activities. The franchisee will likely need to hire legal counsel familiar with Iowa law and arbitration procedures in Iowa.
It is important for prospective franchisees to consider the implications of this forum selection clause, as it can add to the expense and complexity of resolving disputes with B Bops. Franchisees should consult with a legal professional to understand their rights and obligations under the franchise agreement, particularly concerning dispute resolution and choice of forum.