Does the Bft Development Agreement include a waiver of jury trial for dispute resolution?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Waiver of Jury Trial.
THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR EQUITY, REGARDLESS OF WHICH PARTY BRINGS SUIT.
THIS WAIVER SHALL APPLY TO ANY MATTER WHATSOEVER BETWEEN THE PARTIES HERETO WHICH ARISES OUT OF OR IS RELATED IN ANY WAY TO THIS AGREEMENT, THE PERFORMANCE OF EITHER PARTY, AND/OR DEVELOPER'S PURCHASE FROM FRANCHISOR OF THE DEVELOPMENT RIGHTS AND/OR ANY GOODS OR SERVICES.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 FDD, the Bft Development Agreement includes a waiver of jury trial. Specifically, both Bft and the developer agree to waive their right to a jury trial in any legal action related to the agreement. This waiver applies regardless of whether the action is at law or in equity, and regardless of which party initiates the suit.
This waiver extends to any matter arising out of or related to the Development Agreement, the performance of either party, and the developer's purchase of development rights, goods, or services from Bft. This means a developer gives up the right to have a jury decide any disputes falling under these categories.
However, the FDD also includes state-specific riders that may modify this waiver. For example, the rider for North Dakota states that Section 12.H (Waiver of Jury Trial) of the Multi-Unit Agreement is deleted to the extent required by the North Dakota Franchise Investment Law. Similarly, the rider for Minnesota states that Sections 12.G (Waiver of Punitive Damages) and 12.H (Waiver of Jury Trial) of the Multi-Unit Agreement are deleted if and then only to the extent required by the Minnesota Franchises Law. Therefore, the enforceability of the jury trial waiver may depend on the specific state where the developer operates.
Prospective Bft developers should carefully review these state-specific riders and consult with legal counsel to understand the implications of the jury trial waiver in their specific jurisdiction. They should also inquire about any recent legal challenges or interpretations of these waiver provisions that could affect their rights.