How will the arbitration proceedings be conducted with Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
o be conducted by JAMS using its then-current mediation rules and procedures (see www.jamsadr.com/mediation) and to take place at Franchisor's or, as applicable, Franchisor's successor's or assign's, then-current principal place of business (currently, Irvine, California), or via a videoconferencing platform, if both Parties agree. Each Party will bear its own costs in participating in the mediation, and Franchisor and Developer will share JAMS' and the mediator's fees and costs equally. Neither Party will be required to mediate for more than one (1) day.
- D. Mandatory Binding Arbitration.If Franchisor waives the obligation to mediate (as described in Section 12.C) or the informal dispute processes described in Sections 12.B and 12.C do not resolve the claim or dispute to the Parties' satisfaction, all controversies, disputes, or claims between Franchisor, or any of its parents, affiliates, and subsidiaries, and its and their respective owners, officers, directors, agents, and employees (the "Franchisor Parties"), on the one hand, and Developer, or any of its parents, affiliates, and subsidiaries, and its and their respective owners, guarantors, officers, directors, agents, and employees (the "Developer Parties"), on the other hand, arising out of or related to: (1) this Agreement or any other agreement between any of the Franchisor Parties and Developer Parties; (2) the relationships between any Franchisor Parties and Developer Parties; (3) the scope or validity of this Agreement or any other agreement referenced in clause (1) above or any provision of any of such agreements (including the validity and scope of the arbitration provision under this Section, which Franchisor and Developer acknowledges is to be determined by an arbitrator, not a court); or (4) any System Standard, must be submitted for binding arbitration, on demand of either Party, to JAMS. If any Party initiates arbitration or files any counterclaim, it must submit a personally-signed verification therewith. The arbitration proceedings will be conducted by one mutually acceptable arbitrator and, except as this Section otherwise provides, according to JAMS' then-current Comprehensive Arbitration Rules & Procedures (see www.jamsadr.com/rules-comprehensive-arbitration/) or, if applicable, then-current Mass Arbitration Procedures & Guidelines (see https://www.jamsadr.com/mass-arbitration-procedures). If the Parties are unable to agree on an arbitrator, an arbitrator having at least five (5) years' experience in the areas involved 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, any controversies, disputes, or claims between Bft and the franchisee must be submitted for binding arbitration to JAMS, if mediation or informal dispute processes do not resolve the issue. Either party can demand arbitration. If arbitration is initiated or a counterclaim is filed, a signed verification must be submitted. The arbitration proceedings will be conducted by one mutually acceptable arbitrator, according to JAMS' then-current Comprehensive Arbitration Rules & Procedures or Mass Arbitration Procedures & Guidelines.
If the parties cannot agree on an arbitrator, JAMS will appoint an arbitrator with at least five years of experience in the relevant areas. The arbitration will take place at a location chosen by the arbitrator within 50 miles of Bft's principal place of business in Irvine, California, or via videoconference if both parties agree. The Federal Arbitration Act governs all matters relating to arbitration. The arbitrator's awards are final and binding, and judgment upon the awards may be entered in any court of competent jurisdiction.
The arbitrator has the authority to award relief, including money damages, pre- and post-award interest, interim costs, attorneys' fees, specific performance, and injunctive relief. However, the arbitrator cannot declare Bft's trademarks generic or invalid, or award punitive or exemplary damages against any party. Each party will initially pay its share of fees and costs according to JAMS rules, but the arbitrator may award the prevailing party its fees and costs, including experts' and attorneys' fees. Any claim that would constitute a compulsory counterclaim must be submitted within the same proceeding, or it will be barred. The arbitrator cannot consider settlement discussions or offers made by any party. Parties to mediation or arbitration must execute a confidentiality agreement, except for disclosures required by law.