Are there any exceptions to the dispute resolution process for Bombs Away franchisees?

According to the 2024 Bombs Away Franchise Disclosure Document, dispute resolution between Bombs Away and its franchisees is generally handled through arbitration. However, there is an exception for injunctive relief, which allows either party to seek a court order to stop certain actions while the dispute is being resolved. This is a fairly standard practice in franchising, as arbitration may not be able to provide immediate relief in situations where irreparable harm could occur.

The FDD specifies that all disputes are resolved by arbitration except for injunctive relief, and this is subject to applicable state law. Arbitration will take place at Bombs Away's headquarters, which is currently located in Campbell, California, but this is also 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, or if this court lacks jurisdiction, the state courts of the state and county where their headquarters is then located. The franchise agreement is governed by California law, but again, this is subject to applicable state law.

For a prospective Bombs Away franchisee, this means that most disputes will be resolved through arbitration, which is generally less formal and less expensive than going to court. However, it is important to be aware of the exception for injunctive relief, which could result in court proceedings. Franchisees should also be aware that the location of arbitration and any legal proceedings will be in California, which could be a significant cost if the franchisee is located elsewhere. Finally, franchisees should consult with an attorney to understand how applicable state laws might affect the dispute resolution process.