In the event of grouped arbitrations against Bft, how are the arbitration demands organized?
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.
The Parties agree to
cooperate in good faith to implement the above grouped approach to administration of the arbitration demands.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if 75 or more similar arbitration demands are filed within a 30-day period, the demands will be organized into randomized groups. Each group will contain no more than 75 demands, with a final group potentially containing fewer if there are remaining demands. Franchisees' counsel is responsible for organizing and presenting these grouped demands to the arbitration provider, JAMS, in the format required by the JAMS Mass Arbitration Procedures & Guidelines.
JAMS will then assess one set of filing and administrative fees per group and assign one arbitrator to each group, ensuring compliance with disclosure and disqualification procedures. An initial administrative conference will be set for each group. Despite the grouping, the arbitrator must resolve all arbitrations within a group on an individual basis. The first group of 75 arbitrations will proceed individually, while the remaining cases are stayed, and their statutes of limitations are tolled.
Bft and the franchisees are expected to complete the initial 75 individual arbitrations within 120 days after the initial administrative conference. Following the resolution of these initial arbitrations, the parties will engage in good-faith mediation. If mediation fails, the remaining cases will proceed individually in groups of 75, with any remaining demands forming a final group. It is important to note that no final award from an arbitrator in one arbitration will have preclusive effect in any other arbitration. The parties are expected to cooperate in good faith to implement this grouped approach to managing the arbitration demands.