Are Bombs Away franchisees required to arbitrate disputes at a location remote from their business site?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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.
- (e) Confidentiality.
All documents, information, and results pertaining to any arbitration or lawsuit will be confidential, except as required by law or as required for Bombs Away Franchising to comply with laws and regulations applicable to the sale of franchises.
- (f) Performance During Arbitration or Litigation.
Unless this Agreement has been terminated, Bombs Away Franchising and Franchisee will comply with this Agreement and perform their respective obligations under this Agreement during the arbitration or litigation process.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, any disputes arising between the franchisor and franchisee will be settled through arbitration. The FDD specifies that the location for arbitration proceedings will be the city and state where Bombs Away's headquarters are located. This means a franchisee may be required to travel to the location of Bombs Away's headquarters to resolve disputes through arbitration.
This requirement could pose a financial burden on franchisees, particularly those located far from Bombs Away's headquarters, as they would incur travel and accommodation expenses to attend arbitration hearings. It is also worth noting that either party can seek injunctive relief from any court having jurisdiction, without waiving their right to arbitrate, and intellectual property claims can be brought in a court authorized to hear such claims.
Furthermore, the FDD states that all documents, information, and results pertaining to any arbitration or lawsuit will be kept confidential, unless disclosure is required by law or for Bombs Away to comply with franchise regulations. Both Bombs Away and the franchisee are obligated to continue performing their duties under the franchise agreement during any arbitration or litigation process, unless the agreement has been terminated. Franchisees should consider these factors when evaluating the potential costs and obligations associated with resolving disputes with Bombs Away.