Does the agreement to arbitrate for Bft continue even after the franchise agreement expires or is terminated?

According to Bft's 2025 Franchise Disclosure Document, the provisions for dispute resolution, including mandatory binding arbitration, will continue even after the franchise agreement expires or is terminated. Specifically, Article 16 of the Franchise Agreement, which covers governing law, mediation, mandatory binding arbitration, consent to jurisdiction, and attorneys' fees and costs, remains in effect. This means that any disputes arising between the franchisee (or their guarantors) and Bft will still be subject to these resolution processes, even after the franchise term ends.

This continuation of the arbitration agreement is further reinforced by the guarantee agreement, which incorporates Article 16 by reference. The guarantors are also bound by these dispute resolution terms, ensuring that Bft can enforce the terms of the guarantee through the same mechanisms even after the franchise agreement has ended. This is particularly relevant for obligations and liabilities that arise from events that occurred on or before the expiration or termination date, or that are triggered by or survive the expiration or termination of the Franchise Agreement.

For a prospective Bft franchisee, this means that the obligation to resolve disputes through arbitration does not end with the franchise term. It is crucial to understand the implications of Article 16, including the costs associated with mediation and arbitration, as these costs could arise even after the franchise is no longer active. Franchisees should carefully consider this aspect and seek legal counsel to fully understand their rights and obligations under the dispute resolution provisions, both during and after the franchise term.