In an arbitration proceeding involving Bft, what limitations provision applies to each party?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, in any arbitration proceeding, each party will be bound by the provisions of any applicable contractual or statutory limitations provision, whichever expires earlier. This means that the time frame within which a party can bring a claim is limited by either the contract between Bft and the franchisee or by relevant laws, and the shorter of the two will apply.
Furthermore, each party must submit or file any claim that would constitute a compulsory counterclaim within the same proceeding. Failure to do so will result in the claim being permanently barred. This encourages parties to bring all related claims at once to ensure efficient resolution.
Additionally, the arbitrator is not allowed to consider any settlement discussions or offers made by either party during the arbitration. This ensures that the arbitrator's decision is based solely on the merits of the case and not influenced by prior negotiations.