Is the location of arbitration for Bombs Away subject to applicable state law?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| v. Choice of forum | Arbitration will take place where our | |
| headquarters is located (currently, | ||
| Campbell California) (subject to applicable | ||
| state law). Any legal proceedings not | ||
| subject to arbitration will take place in the | ||
| District Court of the United States, in the | ||
| district where our headquarters is then | ||
| located, or if this court lacks jurisdiction, | ||
| the state courts of the state and county | ||
| where our headquarters is then located | ||
| (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the location of arbitration is subject to applicable state law. Specifically, arbitration will take place at Bombs Away's headquarters, which is currently in Campbell, California; however, this is subject to applicable state law. Any legal proceedings not subject to arbitration will take place in the District Court of the United States in the district where Bombs Away's headquarters is then located. If this court lacks jurisdiction, the legal proceedings will take place in the state courts of the state and county where their headquarters is then located; this is also subject to applicable state law.
This means that while Bombs Away prefers arbitration to occur at its headquarters, state laws may dictate otherwise. Prospective franchisees should be aware that the enforceability and specific procedures of arbitration can vary significantly depending on the franchisee's location. This could potentially require Bombs Away to conduct arbitration in a location other than its headquarters, depending on the laws of the franchisee's state.
It is important for potential Bombs Away franchisees to consult with a legal professional to understand how their state's laws may affect the arbitration process and location. Understanding these nuances can help franchisees prepare for potential disputes and ensure they are aware of their rights and obligations under the franchise agreement.