In the context of arbitration demands against Bft, what is expected of both parties regarding the implementation of the grouped approach to administration?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The Parties agree to
cooperate in good faith to implement the above grouped approach to administration of the arbitration demands.
If any similar arbitration demands were originally processed as individual arbitration demands before this grouping procedure was commenced, further proceedings, including the assessment of further arbitration filing or administration fees to either Party shall be governed by the procedures set forth in this Section.
16.11 Attorneys' Fees and Costs.
- A.
To the extent permitted by applicable law, if legal action or arbitration is necessary to enforce the terms and conditions of this Agreement, the prevailing Party shall be entitled to recover reasonable compensation for preparation, investigation, court costs, arbitration costs (if applicable) and reasonable attorneys' fees, from the non-prevailing Party as fixed by an arbitrator or court of competent jurisdiction.
- B.
Separate and distinct from the right of a prevailing Party to recover expenses, costs and fees in connection with any legal proceeding or arbitration, the prevailing Party shall also be 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.
Furthermore, the right to recover post-arbitration award and post judgment expenses, costs and attorneys' fees shall be severable and shall survive any award or judgment and shall not be deemed merged into such judgment.
- C.
Apart from the obligations in Sections 16.11.A and 16.11.B, Franchisee agrees and acknowledges that it will be responsible for the legal fees and other costs that Franchisor incurs in connection with certain modifications that Franchisor agrees to make to the Franchise Agreement, including without limitation, modifications made to address the following situations: (i) relocation; or (ii) any other amendment to extend a given performance deadline of Franchisee, modify the Designated Territory awarded hereunder, or otherwise modify, amend or supplement this Agreement in any way at the request of Franchisee or as necessary for Franchisee to avoid this Agreement being in default or subject to termination.
Franchisor may set forth flat fee amounts designed to help defray the costs associated with addressing certain of the foregoing situations in the context of this Agreement or any other agreement with Franchisor, whether in the Learning Management System or otherwise in a writing distributed to System franchisees.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, both parties, the franchisee and Bft, must cooperate in good faith to implement a grouped approach to administering arbitration demands. This grouped approach is triggered when 75 or more similar arbitration demands are filed within a 30-day period. The goal is to increase the efficiency of dispute resolution.
Specifically, the parties are expected to organize the arbitration demands into randomized groups of no more than 75 demands each. Franchisee's counsel is responsible for organizing and presenting these grouped demands to the arbitration provider, JAMS (Judicial Arbitration and Mediation Services), in the format required by JAMS' Mass Arbitration Procedures & Guidelines. JAMS then assesses one set of filing and administrative fees per group and assigns one arbitrator per group.
After the initial grouping, the first group of 75 arbitrations proceeds on an individual basis, while the remaining cases are stayed, and their statutes of limitations are tolled. The parties are expected to use their best efforts to complete these initial 75 arbitrations within 120 days after the initial administrative conference and then engage in good-faith mediation. If mediation fails, the remaining cases proceed individually in groups of 75. It's important to note that no final award from an arbitrator in one arbitration has preclusive effect on any other arbitration.