Under what condition is the joinder of other parties to an arbitration between Bambu and a franchisee permitted?

According to Bambu's 2025 Franchise Disclosure Document, while arbitration is generally conducted on an individual basis, there are specific circumstances where the joinder of other parties is allowed. If a franchisee controls, is controlled by, or is in active concert with another Bambu franchisee, distributor, or developer, then those parties can be joined in an arbitration between Bambu and the franchisee. Additionally, if there is a guarantor of the franchisee's obligations to Bambu, that guarantor can also be joined in the arbitration. The joinder of an owner, director, officer, manager, partner, or other representative or agent of the franchisee is also permitted in any arbitration between Bambu and the franchisee.

This provision ensures that all related parties involved in the franchise operation or its financial obligations can be included in a single arbitration proceeding. This can streamline the dispute resolution process and prevent potentially conflicting outcomes in separate arbitrations. For a prospective franchisee, this means that if they have related business entities or individuals involved in their Bambu franchise, those parties may be required to participate in any arbitration with Bambu.

It is important to note that this joinder provision is an exception to the general rule that arbitration is conducted on an individual basis. Franchisees should carefully consider the implications of this provision, especially if they have complex business structures or financial arrangements. Understanding these conditions is crucial for franchisees to be prepared for potential dispute resolution scenarios with Bambu.