In a Bft arbitration proceeding, what fees and costs can the arbitrator award to the prevailing party?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
will be appointed by JAMS. All proceedings will be conducted at a suitable location chosen by the arbitrator
that is within 50 miles of Franchisor's (or its successor's or assign's, as applicable) then-current principal place of business (currently, Irvine, California), or via a videoconferencing platform, if both Parties agree. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). The interim and final awards of the arbitrator shall be final and binding upon each Party, and judgment upon the arbitrator's awards may be entered in any court of competent jurisdiction.
The arbitrator has the right to award or include in his or her awards any relief which he or she deems proper, including money damages, pre- and post-award interest, interim costs and attorneys' fees, specific performance, and injunctive relief, provided that the arbitrator may not declare any of the trademarks owned by Franchisor, or its parents, affiliates, and subsidiaries, generic or otherwise invalid, or award any punitive or exemplary damages against any Party to the arbitration proceeding (Franchisor and Developer hereby waiving to the fullest extent permitted by law any such right to or claim for any punitive or exemplary damages against any Party to the arbitration proceeding). Except as otherwise stated in this Agreement, the arbitrator shall have no authority to issue any relief on any basis other than an individual basis.
The Parties agree that each Party will pay its share of fees and costs in accordance with applicable JAMS rules. If a Party fails to timely pay such fees or costs, the other Party may, in its discretion, advance such costs on behalf of the nonpaying Party. To the extent permitted by applicable law, at the conclusion of the arbitration, the arbitrator shall award to the prevailing Party its fees and costs, including all reasonable experts', attorneys' and other professionals' fees incurred in the proceedings.
In any arbitration proceeding, each Party will be bound by the provisions of any applicable contractual or statutory limitations provision, whichever expires earlier. Each Party must submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding. Any claim which is not submitted or filed as required will be forever barred. The arbitrator may not consider any settlement discussions or offers that might have been made by any Party.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the arbitrator in an arbitration proceeding has the authority to award relief deemed proper, including money damages, pre- and post-award interest, interim costs, and attorneys' fees. However, the arbitrator cannot declare Bft's trademarks invalid or award punitive or exemplary damages against any party, as these rights are waived to the fullest extent permitted by law.
In addition to the arbitrator's general authority to award relief, the prevailing party in the arbitration is entitled to their fees and costs, including reasonable experts', attorneys', and other professionals' fees incurred during the proceedings, to the extent permitted by applicable law. Each party is initially responsible for paying its share of fees and costs according to JAMS (Judicial Arbitration and Mediation Services) rules, but if one party fails to pay, the other party can advance those costs. At the conclusion of the arbitration, the arbitrator will award the prevailing party its fees and costs.
Furthermore, if legal action or arbitration is necessary to enforce the terms of the Franchise Agreement, the prevailing party is entitled to recover reasonable compensation for preparation, investigation, court costs, arbitration costs, and reasonable attorneys' fees from the non-prevailing party, as determined by the arbitrator or a court. The prevailing party is also entitled to receive all expenses, costs, and reasonable attorneys' fees incurred in connection with the enforcement of any arbitration award or judgment entered, to the extent permitted by applicable law. The right to recover post-arbitration award and post-judgment expenses, costs, and attorneys' fees survives any award or judgment and is not merged into it.