How are disputes resolved according to the Bombs Away franchise agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| u. Dispute resolution by | All disputes are resolved by arbitration | |
| arbitration or mediation | ||
| (except for injunctive relief) (subject to | ||
| applicable state law). | ||
| v. Choice of forum | Arbitration will take place where our | |
| headquarters is located (currently, | ||
| Campbell California) (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 our headquarters is then | ||
| located, or if this court lacks jurisdiction, | ||
| the state courts of the state and county | ||
| where our headquarters is then located | ||
| (subject to applicable state law). | ||
| w. Choice of law | § 18.8 | California (subject to applicable state law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, disputes are primarily resolved through arbitration or mediation. The FDD specifies that all disputes will be resolved this way, except for actions seeking injunctive relief, and this is subject to applicable state law.
Arbitration will occur at Bombs Away's headquarters, which is currently located in Campbell, California, although this is also subject to applicable state law. Any legal proceedings that are not subject to arbitration will take place in the District Court of the United States in the district where Bombs Away's headquarters is located. If the U.S. District Court lacks jurisdiction, the proceedings will occur in the state courts of the state and county where Bombs Away's headquarters is located. Again, this is subject to applicable state law.
The franchise agreement is governed by California law, also subject to applicable state law. This means that the laws of California will be used to interpret the franchise agreement and resolve any disputes, unless state law dictates otherwise. Prospective franchisees should be aware of these dispute resolution terms, as they will be bound by them upon signing the franchise agreement. It is important to understand the implications of agreeing to arbitration, including the potential costs and limitations on appealing decisions.