Can a Bambu franchisee consolidate an arbitration proceeding involving Bambu with another arbitration of any kind?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Bambu and Franchisee agree that arbitration will be conducted on an individual basis only. Neither party shall commence any arbitration with a third party against the other, or join with any third party in any arbitration involving Bambu and Franchisee other than the Bambu Affiliates and the Franchisee Affiliates. Further, neither Bambu nor Franchisee shall attempt to consolidate or otherwise combine in any manner an arbitration proceeding involving Bambu and Franchisee with another arbitration of any kind, nor shall Bambu or Franchisee attempt to certify a class or participate as a party in a class action against the other.
- b. The foregoing notwithstanding, in the event Franchisee controls, is controlled by or is in active concert with another franchisee, distributor, or developer of Bambu, or there is a guarantor of some or all of the Franchisee's obligations to Bambu, then the joinder of those parties to any arbitration between Bambu and Franchisee shall be permitted, and in all events, the joinder of an owner, director, officer, manager, partner or other representative or agent of Franchisee shall be permitted.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from consolidating an arbitration proceeding involving Bambu with another arbitration of any kind. This means that any dispute between a franchisee and Bambu that goes to arbitration must be handled separately and cannot be combined with other arbitration cases, even if they involve similar issues or parties. This is designed to keep the arbitration process focused and manageable.
However, there are exceptions to this rule. If the franchisee is under the control of, controls, or is working in conjunction with another Bambu franchisee, distributor, or developer, then joining those parties in the arbitration is allowed. Additionally, the inclusion of an owner, director, officer, manager, partner, or other representative or agent of the franchisee is also permitted. This exception seems to allow for a more comprehensive resolution when related parties are involved in the dispute.
This restriction on consolidating arbitration proceedings and the outlined exceptions are common in franchise agreements. It is important for a prospective Bambu franchisee to understand these limitations, as they could impact how disputes are resolved. Franchisees should be aware that they cannot initiate or participate in class action lawsuits against Bambu.