factual

What action is required after the resolution of the initial 75 individual arbitrations against Bft?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

(g) the Parties shall use their best efforts to complete the initial 75 individual arbitrations within 120 days after the initial administrative conference, and shall engage in good-faith mediation following resolution of the initial 75 individual arbitrations; (h) if mediation is unsuccessful, the remaining cases shall proceed on an individual basis in groups of 75 cases (plus, to the extent there are fewer than 75 arbitration demands remaining, a final group consisting of the remaining demands); and (i) no final award from an arbitrator in any one arbitration shall have preclusive effect in any other arbitration.

Source: Item 23 — RECEIPTS (FDD pages 79–265)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, after the initial 75 individual arbitrations are resolved, the parties involved must participate in good-faith mediation. This mediation is intended to help resolve the remaining disputes. The FDD specifies that the parties should use their best efforts to complete these initial arbitrations within 120 days after the initial administrative conference.

If the mediation proves unsuccessful, the remaining arbitration cases will then proceed on an individual basis. These will be grouped into sets of 75 cases each, with any remaining cases forming a final group if they number less than 75. This structured approach is designed to manage a large number of similar arbitration demands efficiently.

It is important to note that the final award from an arbitrator in any single arbitration case will not have a preclusive effect on any other arbitration. This means that each case will be considered independently, and the outcome of one will not automatically determine the outcome of others. This ensures that each franchisee's case is evaluated on its own merits.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.