Where will arbitration take place for disputes related to the Bombs Away franchise agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Location.
The place of arbitration shall be the city and state where Bombs Away Franchising's headquarters are located.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the location for arbitration will be in the city and state where Bombs Away Franchising's headquarters are located. This means that any disputes arising from the franchise agreement, subject to certain exceptions, will be resolved through arbitration in the specific location of Bombs Away's main office.
This requirement could mean increased costs for a franchisee who does not live near Bombs Away's headquarters. They would need to travel to attend the arbitration hearings. The FDD specifies that the American Arbitration Association's Commercial Arbitration Rules will govern the arbitration process, including the Optional Rules for Emergency Measures of Protection.
However, the FDD also includes riders for Rhode Island and Washington. For a franchise purchased in Washington, the arbitration site must be in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator. For franchisees in Rhode Island, any provision restricting jurisdiction or venue to a forum outside of Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. Therefore, the location of arbitration may vary based on the franchisee's location and the specific state laws applicable.
For any legal proceeding not required to be submitted to arbitration, the parties agree that such legal proceeding will be brought in the United States District Court where Bombs Away Franchising's headquarters is then located. If there is no federal jurisdiction over the dispute, the parties agree that any such legal proceeding will be brought in the court of record of the state and county where Bombs Away Franchising's headquarters is then located.