Who assesses the filing and administrative fees per group in grouped arbitrations involving Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
16.10 Grouped Arbitrations. To the extent permitted by applicable law and notwithstanding any other provision of this Agreement, to increase efficiency of resolution, in the event 75 or more similar arbitration demands are filed within a 30-day period: (a) the Parties shall cooperate to organize the arbitration demands into randomized groups of no more than 75 demands (plus, to the extent there are fewer than 75 arbitration demands remaining, a final group consisting of the remaining demands); (b) Franchisees' counsel shall organize and present the grouped demands to the arbitration provider in a format as required under the JAMS Mass Arbitration Procedures & Guidelines; (c) JAMS shall assess one set of filing and administrative fees per group and shall assign one arbitrator per group, subject to any applicable disclosure and disqualification procedures available under applicable law; (d) JAMS shall set one initial administrative conference per group; (e) regardless of the grouping described above, the arbitrator shall resolve all arbitrations within a group on an individual basis; (f) the first group of 75 arbitrations shall proceed on an individual basis, while the remaining cases are stayed and applicable statutes of limitations for those cases are tolled; (g) the Parties shall use their best efforts to complete the initial 75 individual arbitrations within 120 days after the initial administrative conference, and shall engage in good-faith mediation following resolution of the initial 75 individual arbitrations; (h) if mediation is unsuccessful, the remaining cases shall proceed on an individual basis in groups of 75 cases (plus, to the extent there are fewer than 75 arbitration demands remaining, a final group consisting of the remaining demands); and (i) no final award from an arbitrator in any one arbitration shall have preclusive effect in any other arbitration.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, JAMS (Judicial Arbitration and Mediation Services) assesses one set of filing and administrative fees per group in grouped arbitrations. This process is initiated if 75 or more similar arbitration demands are filed within a 30-day period.
This means that if a Bft franchisee becomes involved in a dispute leading to arbitration, and there are numerous similar demands, the costs could be consolidated. Instead of each franchisee paying individual filing fees, the fees are assessed per group of up to 75 demands. This could potentially lower the upfront arbitration costs for franchisees in such situations.
It is important to note that while the administrative fees are assessed per group, the arbitrator will still resolve all arbitrations within a group on an individual basis. This grouped approach is intended to increase the efficiency of the resolution process, but it does not compromise the individual attention each case receives during arbitration.