Are there any exceptions to the arbitration requirement for Bambu disputes?
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 Bambu's 2025 Franchise Disclosure Document, disputes are generally resolved through binding arbitration. However, there are specific exceptions to this rule. Actions related to the Marks (trademarks) or to enforce the provisions of Article 21 of the Franchise Agreement can be brought by Bambu in a court of competent jurisdiction or in arbitration, at Bambu's option.
Additionally, if a dispute arises from a separate agreement or instrument, such as a promissory note or lease between the franchisee and Bambu, the dispute resolution procedure outlined in that specific agreement will take precedence over the arbitration clause in the Franchise Agreement. However, Bambu retains the option to bring claims against the franchisee based on such other agreements in arbitration, particularly if it's in conjunction with another dispute between the parties.
In summary, while Bambu generally favors arbitration, it retains the flexibility to pursue certain legal actions in court, especially those concerning intellectual property or when enforcing specific provisions of the agreement. Franchisees should be aware of these exceptions and understand that the specific dispute resolution mechanism may vary depending on the nature of the claim and any other agreements in place with Bambu.