factual

Does the Bombs Away franchise agreement permit class action lawsuits or arbitrations?

Bombs_Away Franchise · 2024 FDD

Answer 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.

Source: Item 22 — CONTRACTS (FDD pages 35–36)

What This Means (2024 FDD)

According to the 2024 Bombs Away Franchise Disclosure Document, franchisees are prohibited from participating in class action lawsuits against the company. The franchise agreement stipulates that any claims must be pursued on an individual basis, and franchisees waive any right to act on a class-wide basis.

Specifically, Article 17.3 of the Bombs Away franchise agreement explicitly states that all claims must be arbitrated, litigated, or otherwise resolved individually. This means a franchisee cannot join with other franchisees to bring a single, collective claim against Bombs Away. This waiver applies to all forms of dispute resolution, including arbitration and litigation.

This clause is relatively common in franchise agreements. By including this waiver, Bombs Away aims to avoid large, complex lawsuits involving multiple franchisees, which can be costly and time-consuming. However, this also means that a Bombs Away franchisee must bear the full cost and risk of pursuing any claim against the franchisor on their own, without the ability to pool resources with other franchisees.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.