Where will arbitration take place for Bombs Away disputes?

According to Bombs Away's 2024 Franchise Disclosure Document, arbitration will take place at the location of Bombs Away's headquarters. Currently, the headquarters is located in Campbell, California. This is subject to applicable state law. Any legal proceedings not subject to arbitration will take place in the District Court of the United States, in the district where Bombs Away's headquarters is then located, or if this court lacks jurisdiction, the state courts of the state and county where their headquarters is then located, also subject to applicable state law.

This means that if a franchisee has a dispute with Bombs Away that goes to arbitration, the franchisee will likely need to travel to Campbell, California, regardless of where their franchise is located. This could create a significant cost burden for the franchisee, as they will be responsible for travel, accommodation, and potentially local legal representation. Franchisees should factor these potential costs into their assessment of the franchise opportunity.

The FDD also notes that the choice of law is California, which means that California law will govern the interpretation and enforcement of the franchise agreement. This is a common practice in franchising, as it provides the franchisor with a consistent legal framework across all of its franchise locations. However, it is important for franchisees to understand that they may be subject to laws that are different from those in their own state.

It is important to note the phrase "subject to applicable state law" appears multiple times in this section. This means that certain state laws may override the terms outlined in the franchise agreement. Prospective franchisees should consult with a legal professional to understand how state laws may affect the arbitration process and other legal proceedings.