Where will arbitration or litigation take place for dispute resolution related to a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (u) | Dispute resolution by arbitration or mediation | Article 23 of FA; Section 8.1 of MUDA | Arbitration or litigation in Denver, Colorado (subject to state law). |
| (v) | Choice of forum | Article 23 of FA; Section 8.1 of MUDA | Arbitration or litigation in Denver, Colorado. You and we agree to waive our rights to a jury. (Subject to applicable state law.) |
| (w) | Choice of law | Section 23.5 of FA; Section 8.1 of MUDA | Colorado law applies. The Colorado Consumer Protection Act does not apply. (Subject to applicable state law.) |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, dispute resolution through arbitration or litigation will take place in Denver, Colorado. This is detailed in Item 17, which summarizes key provisions of the Franchise Agreement and Multi-Unit Development Agreement. Colorado law will govern these proceedings, but the Colorado Consumer Protection Act will not apply.
For a prospective Bambu franchisee, this means that any legal disputes with the franchisor will need to be resolved in Denver, Colorado, regardless of where the franchise is located. This could involve significant travel and legal expenses if the franchisee is not located near Denver. It is also important to note that both the franchisee and Bambu agree to waive their rights to a jury trial, which means that a judge or arbitrator will make the final decision.
The FDD also states that these dispute resolution terms are subject to applicable state law, which means that certain state laws may override or modify these provisions. Prospective franchisees should consult with an attorney to understand how these dispute resolution terms may affect their rights and obligations under the Franchise Agreement, particularly in their specific state. Understanding the implications of these clauses is crucial before signing the agreement.