Under the B Bops Franchise Agreement, where must arbitration take place for dispute resolution?
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, dispute resolution through arbitration will take place in Des Moines, Iowa. Specifically, Item 17 outlines that, with the exception of certain claims related to the use of licensed marks or proprietary information, all disputes must be arbitrated in Des Moines, Iowa. Furthermore, arbitration must be commenced in the State of Iowa.
This means that if a franchisee has a dispute with B Bops that is subject to arbitration, the proceedings will be held in Des Moines, Iowa, regardless of where the franchise is located. This could involve travel and associated expenses for the franchisee to attend the arbitration hearings. Franchisees should factor in these potential costs when evaluating the franchise opportunity.
It is important to note the exception for claims related to the use of licensed marks or proprietary information, which may be subject to a different dispute resolution process. Franchisees should carefully review Section 17 of the Development Agreement, as referenced in the table, to fully understand the scope of the arbitration clause and any exceptions that may apply. Additionally, Iowa law will govern the legal aspects of the agreement, subject to state law.