Does the Bombs Away franchise agreement prevent a franchisee from entering into an agreement to conduct arbitration outside of their state at the time of arbitration?

According to the 2024 Bombs Away Franchise Disclosure Document, the franchise agreement does not prevent a franchisee from agreeing to conduct arbitration outside of their state at the time of arbitration. Specifically, the FDD states that a provision requiring arbitration or litigation to be conducted outside of the franchisee's state does not preclude the franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside that state. This means that while the initial franchise agreement might suggest arbitration will occur within the franchisee's state, the franchisee retains the right to agree to an out-of-state arbitration location when the time for arbitration actually arrives.

This flexibility could be beneficial for a Bombs Away franchisee, as it allows them to consider various factors at the time of arbitration, such as convenience, cost, or the location of relevant witnesses or evidence. However, it also means that a franchisee could potentially be pressured into agreeing to an arbitration location that is less favorable to them.

It's important for prospective Bombs Away franchisees to understand this provision and to carefully consider the implications before agreeing to any out-of-state arbitration. They should seek legal counsel to fully understand their rights and options in the event of a dispute that requires arbitration. This clause provides flexibility but also necessitates careful consideration and potentially legal advice when arbitration becomes a reality.