Can a Bombs Away franchisee agree to conduct arbitration at a location outside their state?

According to the 2024 Bombs Away FDD, whether a franchisee can agree to conduct arbitration outside of their state depends on the specific state laws and the terms agreed upon at the time of arbitration. For instance, in Minnesota, the FDD indicates that the franchisor cannot require litigation to be conducted outside the state. However, the FDD also states that this does not prevent a franchisee from agreeing to conduct arbitration at a location outside of their state at the time of arbitration.

In Washington, any arbitration or mediation involving a franchise purchased in Washington must occur either in the state of Washington or in a location mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.

In North Dakota, franchise agreements that stipulate arbitration must occur at a location remote from the franchisee's business have been determined by the Securities Commissioner to be unfair, unjust, or inequitable to North Dakota franchisees. Rhode Island's addendum specifies that any provision restricting jurisdiction or venue to a forum outside Rhode Island or requiring the application of laws from another state is void concerning claims enforceable under the Rhode Island Franchise Investment Act. Therefore, franchisees need to be aware of the specific state laws that may impact the enforceability of arbitration clauses within their franchise agreement.