Are there any claims that are excluded from the arbitration agreement for B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator(s) shall have the right to award or include in the award any relief deemed appropriate under the circumstances, including, without limitation, money damages (with interest on unpaid amounts from the due date) specific performance, injunctive relief and attorneys fees and costs, provided that the arbitrator(s) shall not award exemplary or punitive damages. The award and decision of the arbitrator(s) shall be conclusive and binding upon all parties hereto and judgment upon the award may be entered in any court of competent jurisdiction. Each party waives any right to contest the validity and enforceability of such award. The parties agree to be bound by the provisions of any limitation on the period of time which claims must be brought under applicable law or this Agreement. The parties further agree, that in connection with any such arbitration proceeding, each shall file any compulsory counterclaim (as defined under the Federal Rules of Civil Procedure) within thirty (30) days after the date of the filing of the claim to which it relates. This Section 17 shall continue in full force and effect subsequent to and not withstanding the expiration or termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the arbitration agreement does not allow for exemplary or punitive damages. The document states that the arbitrator has the right to award relief deemed appropriate, including money damages, specific performance, injunctive relief, and attorneys fees and costs. However, the arbitrator(s) are specifically prohibited from awarding exemplary or punitive damages.
This means that while a B Bops franchisee can seek compensation for actual losses and legal expenses through arbitration, they cannot pursue additional damages intended to punish B Bops for misconduct. This limitation is a notable factor for prospective franchisees to consider, as it could impact the potential recovery in a dispute.
The B Bops agreement also stipulates that the arbitrator's decision is final and binding, with each party waiving any right to contest the validity and enforceability of the award. Additionally, any claims must be brought within the time limits set by applicable law or the agreement itself, and compulsory counterclaims must be filed within thirty days of the initial claim. These provisions emphasize the importance of understanding and adhering to the specific terms and deadlines outlined in the agreement.