Does the Bombs Away franchise agreement allow for class action lawsuits or arbitrations?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
17.3 Waiver of Class Actions. The parties agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis.
17.1 Arbitration.
(a) Disputes Subject to Arbitration.
Except as expressly provided in subsection (c) and (d), any controversy or claim between the parties (including any controversy or claim arising out of or relating to this Agreement or its formation, and including any question of arbitrability) shall be resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection.
Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.
- (b) Location.
The place of arbitration shall be the city and state where Bombs Away Franchising's headquarters are located.
- (c) Injunctive Relief.
Either party may apply to the arbitrator seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved.
Either party also may, without waiving any remedy or right to arbitrate under this Agreement, seek from any court having jurisdiction any interim or provisional injunctive relief.
- (d) Intellectual Property Claims.
Either party may bring a claim involving an alleged infringement of any of Bombs Away Franchising's intellectual property rights in a court authorized to hear such claims under Section 17.5 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the franchise agreement includes a waiver of class actions. This means that any claims arising from or related to the agreement must be pursued on an individual basis through arbitration, litigation, or other resolution methods. Franchisees waive their right to participate in class-wide actions against Bombs Away.
Regarding arbitration, the FDD specifies that any controversy or claim between the parties, including those related to the agreement's formation or any questions of arbitrability, will be resolved through arbitration administered by the American Arbitration Association, following its Commercial Arbitration Rules. The location for arbitration will be the city and state where Bombs Away Franchising's headquarters are located.
There are exceptions to the arbitration requirement. Either party can seek injunctive relief from a court without waiving their right to arbitrate, and Bombs Away Franchising can bring claims involving alleged intellectual property infringement in a court authorized to hear such claims. These stipulations provide Bombs Away with avenues to protect its brand and intellectual property, while franchisees are generally bound to individual arbitration for other disputes.