Who selects the arbitration organization (JAG or AAA) for a dispute involving the Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
All controversies, disputes, claims, causes of action and/or alleged breaches or failures to perform between Bambu, its subsidiaries and affiliated companies, and/or its or their shareholders, members, managers, officers, directors, agents, employees and attorneys, in their representative capacity (collectively, the "Bambu Affiliates"), on the one side, and Franchisee, and its affiliated companies and/or its or their Bambū Certified Team Leaders, employees, officers, directors, owners, and/or guarantors (collectively, the "Franchisee Affiliates"), on the other side, if applicable, arising out of or related to: (1) this Agreement; (2) the relationship of the parties; (3) the validity of this Agreement; or (4) any Bambū system will be submitted for binding arbitration to either the Judicial Arbiter Group ("JAG") or the American Arbitration Association ("AAA"), as selected by the party submitting the demand; except for actions brought which are related to or based on the Marks or to enforce the provisions of Article 21 of this Agreement, which actions Bambu, at its option, may bring either in a court of competent jurisdiction or in arbitration. Notwithstanding the language above, if the action is based on a separate agreement or instrument between Franchisee or any of the Franchisee Affiliates and Bambu or any of the Bambu Affiliates, such as a promissory note or lease, the dispute resolution procedure in that agreement or instrument will control rather than this Section 23.1; provided, that, at Bambu's sole option, any claim of Bambu or any Bambu Affiliates against Franchisee or any of the Franchisee Affiliates based on such other agreement or instrument may be brought in arbitration in conjunction with a dispute between the parties
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the party that submits the arbitration demand has the power to select between the Judicial Arbiter Group (JAG) or the American Arbitration Association (AAA). This applies to controversies, disputes, claims, causes of action, and alleged breaches between Bambu and its affiliates, and the franchisee and its affiliates, arising out of or related to the franchise agreement, the relationship of the parties, or the Bambu system. However, this selection does not apply to actions related to the Marks or to enforce the provisions of Article 21 of the agreement, as Bambu may bring these actions in court or in arbitration at its discretion.
For a prospective Bambu franchisee, this means that if you initiate arbitration against Bambu, you can choose whether the arbitration is conducted through JAG or AAA. Conversely, if Bambu initiates arbitration against you, they get to make that choice. This can be a strategic consideration, as different arbitration organizations may have different rules, procedures, and arbitrators that could be more or less favorable to your case.
It's important to note that if the dispute is based on a separate agreement or instrument, such as a promissory note or lease, the dispute resolution procedure in that specific agreement will take precedence, unless Bambu chooses to bring the claim in arbitration along with another dispute. Additionally, if Bambu is a party to the dispute, the arbitration proceedings will be conducted in Denver, Colorado, and the arbitrator must be a resident of Colorado, knowledgeable of Colorado law, and fluent in English. If Bambu is not a party to the dispute, the arbitration proceedings will be conducted within the area where the franchisee's Bambu shop is based.