According to the Bft Franchise Agreement, who bears the costs of arbitration?

According to Bft's 2025 Franchise Disclosure Document, the costs of arbitration are addressed in Item 17, concerning dispute resolution. The document states that each party involved in mediation will bear their own costs. Bft and the developer will equally share the fees and costs associated with JAMS (Judicial Arbitration and Mediation Services) and the mediator.

This means that if a dispute arises and mediation is pursued, a prospective Bft franchisee (referred to as the Developer in this document) will be responsible for their individual expenses, such as attorney fees and preparation costs. However, the costs charged by JAMS and the mediator will be split evenly between Bft and the franchisee. This arrangement is specific to mediation, as the document does not explicitly detail the allocation of costs for arbitration, which may occur if mediation is unsuccessful or waived.

It is important for a potential Bft franchisee to understand the financial implications of dispute resolution. While mediation costs are shared for JAMS and the mediator's fees, arbitration costs are not specified in this excerpt. Franchisees should clarify with Bft how arbitration costs are handled to fully understand their potential financial exposure in case of a dispute. Understanding these costs is crucial for budgeting and assessing the overall financial risk of investing in a Bft franchise.