Can Bft arbitration proceedings be conducted via videoconferencing?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Franchisee 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.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, arbitration proceedings can be conducted via a videoconferencing platform if both parties agree. Otherwise, the proceedings will occur at a location chosen by the arbitrator within 50 miles of Bft's principal place of business, which is currently in Irvine, California.
This means that if a dispute arises between a franchisee and Bft, the franchisee may have the option to participate in arbitration remotely, potentially saving on travel costs and time. However, this is contingent on Bft also agreeing to the videoconferencing format. If Bft does not agree, the franchisee would need to attend the arbitration in person near Irvine, California.
The arbitration process is governed by the Federal Arbitration Act, and the arbitrator's decisions are final and binding. The arbitrator can award various types of relief, including monetary damages and injunctive relief, but cannot invalidate Bft's trademarks or award punitive damages. This clause ensures that while franchisees have recourse to resolve disputes, there are limitations to the arbitrator's powers, protecting Bft's brand and limiting potential excessive damage awards.