How many arbitrators will hear arbitration proceedings related to the Bambu franchise?
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.
If Bambu is not a party to such controversy, dispute or claim, such arbitration proceedings shall be conducted within the area in which Franchisee's Bambū shoppe is based and will be heard by one arbitrator in accordance with the then current commercial arbitration rules of any arbitration group mutually acceptable to Franchisee and Associate, and if Franchisee and Associate cannot agree on an arbitration group within 30 days after demand for arbitration, then the AAA shall conduct such arbitration in accordance with its then current commercial arbitration rules.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the number of arbitrators involved in arbitration proceedings depends on whether Bambu is a party to the dispute. If Bambu is a party, the arbitration will be conducted in Denver, Colorado, and heard by one arbitrator. This arbitrator must be a resident of Colorado, knowledgeable in Colorado law, and fluent in English. The party initiating the arbitration selects either the Judicial Arbiter Group or the American Arbitration Association (AAA) to manage the process.
However, if Bambu is not a party to the dispute, the arbitration proceedings will occur within the area where the franchisee's Bambu shop is located. In this case, the dispute will also be heard by one arbitrator. The arbitration will follow the commercial arbitration rules of a mutually acceptable arbitration group between the franchisee and the Associate. If they cannot agree on an arbitration group within 30 days, the AAA will conduct the arbitration according to its commercial arbitration rules.
This means that regardless of whether Bambu is directly involved in the dispute, only one arbitrator will preside over the arbitration proceedings. For a prospective franchisee, this simplifies the arbitration process, potentially reducing costs and time compared to using a panel of arbitrators. However, the franchisee should be aware of the location and selection process of the arbitrator, as it varies depending on Bambu's involvement in the dispute.