Are arbitration issues for Bambu to be resolved pursuant to any statutes, regulations or common law other than the United States Federal Arbitration Act?

According to Bambu's 2025 Franchise Disclosure Document, the United States Federal Arbitration Act governs all questions regarding the enforceability of arbitration agreements and the confirmation of arbitration awards. The FDD explicitly states that no arbitration issues are to be resolved pursuant to any other statutes, regulations, or common law. This means that any disputes that go to arbitration will be handled under the federal law designed for arbitration.

This clause aims to ensure a consistent and predictable legal framework for resolving disputes through arbitration, relying solely on federal law rather than potentially conflicting state laws. However, riders for certain states like Maryland, Minnesota, New York, Virginia, and Washington, indicate potential conflicts with state laws and regulations. Bambu states that it intends to rely on federal pre-emption under the Federal Arbitration Act, even when state-specific riders suggest otherwise.

For a prospective franchisee, this has significant implications. While the franchise agreement specifies the Federal Arbitration Act, state-specific regulations may provide additional rights or protections. Franchisees should be aware of the interplay between federal arbitration law and any applicable state laws, especially those outlined in the state-specific riders. It is important to seek legal counsel to understand how these provisions apply in their specific state and to ensure their rights are fully protected.

Despite the inclusion of state-specific riders, Bambu maintains its intent to enforce all provisions of the agreement, including arbitration clauses, to the fullest extent permitted by law. This stance highlights the importance of understanding the legal landscape and potential conflicts between federal and state laws when entering into a franchise agreement with Bambu.