What law governs all questions about the enforceability of Sections 23.1 and 23.2 for Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
The United States Federal Arbitration Act shall govern all questions about the enforceability of Sections 23.1 and 23.2, and the confirmation of any arbitration awards pursuant to such procedures, and no arbitration issues are to be resolved pursuant to any other statutes, regulations or common law.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the United States Federal Arbitration Act governs all questions regarding the enforceability of Sections 23.1 and 23.2. This also applies to the confirmation of any arbitration awards that may arise from these procedures. The FDD specifies that no arbitration issues related to these sections are to be resolved using any other statutes, regulations, or common law.
This means that any disputes concerning the enforceability of the arbitration provisions (Sections 23.1 and 23.2) in the franchise agreement will be decided based on the Federal Arbitration Act, which favors arbitration. This pre-empts any state laws or common law principles that might otherwise apply.
For a prospective franchisee, this is important because it clarifies that disputes about arbitration will be handled under federal law, potentially limiting the franchisee's options for challenging the arbitration process or outcome. It also means that Bambu intends to rely on federal pre-emption under the Federal Arbitration Act to enforce all provisions of the agreement.