Which arbitration groups are acceptable if Bambu is a party to the dispute?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If Bambu is a party to any controversy, dispute or claim, such arbitration proceedings shall be conducted in Denver, Colorado, U.S.A., will be submitted to either the Judicial Arbiter Group or the American Arbitration Association ("AAA"), as selected by the party submitting the arbitration demand, and will be heard by one arbitrator in accordance with the then current rules of AAA applicable to commercial arbitration.
The arbitrator shall be a resident of the State of Colorado, U.S.A. knowledgeable of Colorado law and fluent in English.
The arbitration proceeding and all other hearings shall be conducted in English only, although Associate shall have the right, at Associate's option and sole expense, to have a translator present at the proceeding or other hearings.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if Bambu is a party to a dispute, the arbitration proceedings will be conducted in Denver, Colorado. The acceptable arbitration groups are the Judicial Arbiter Group (JAG) or the American Arbitration Association (AAA). The selection of which group will conduct the arbitration is made by the party submitting the arbitration demand. The arbitration will be heard by one arbitrator in accordance with the then-current rules of the AAA applicable to commercial arbitration. The arbitrator must be a resident of Colorado, knowledgeable in Colorado law, and fluent in English. The arbitration proceedings and all hearings will be conducted in English.
This means that as a prospective Bambu franchisee, if a dispute arises that leads to arbitration involving Bambu, you should be prepared for the arbitration to take place in Denver, Colorado, regardless of where your franchise is located. You will need to factor in travel costs and the potential need for local legal representation. The choice of JAG or AAA rests with the party initiating the arbitration, so you may not have control over which organization is selected.
It is also important to note that the arbitrator must be knowledgeable in Colorado law, which could be a disadvantage to the franchisee if they are not familiar with Colorado law. While the proceedings will be in English, the franchisee has the right to have a translator present at their own expense. This could add to the overall cost of arbitration. Franchisees should consider these factors when evaluating the potential costs and risks associated with the Bambu franchise.