Does the restriction on requiring binding referrals apply to arbitration before an independent arbitrator for Bombs Away franchisees?

Based on the 2024 Bombs Away Franchise Disclosure Document, the document outlines policies regarding referral fees between Bombs Away businesses, but it does not explicitly address whether restrictions on requiring binding referrals apply to arbitration before an independent arbitrator. The FDD states that Bombs Away Franchising may set policies binding on all franchisees regarding referral fees when a customer is referred from one Bombs Away business to another, and that Bombs Away Franchising may waive or modify such policies in any circumstance as Bombs Away Franchising determines.

While the FDD details Bombs Away's ability to set and modify referral policies, it does not specify how these policies interact with dispute resolution methods like arbitration. The document includes information on dispute resolution, governing law, and waivers of class actions, but it does not clarify whether franchisees can be compelled to accept binding referrals as part of an arbitration settlement.

Therefore, it remains unclear whether Bombs Away can enforce mandatory binding referrals through arbitration. A prospective franchisee should seek clarification from Bombs Away regarding the interplay between referral policies and the arbitration process to fully understand their rights and obligations.