In the Bft franchise agreement, how many arbitration demands are grouped together?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the franchise agreement outlines a specific procedure for handling a large number of similar arbitration demands. If 75 or more similar arbitration demands are filed within a 30-day period, they 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.
For a prospective Bft franchisee, this means that if they were to become involved in a dispute that leads to a large number of similar arbitration demands being filed, the arbitration process would be streamlined by grouping the demands together. This could potentially lead to a more efficient and cost-effective resolution of the disputes. However, it is important to note that each arbitration within a group will still be resolved on an individual basis, and no final award from one arbitration will have a preclusive effect on any other arbitration.
Bft's approach aims to balance efficiency with individual consideration. The initial group of 75 arbitrations will proceed individually, while the remaining cases are stayed and statutes of limitations are tolled. The parties are expected to complete these initial arbitrations within 120 days after the initial administrative conference and then engage in good-faith mediation. If mediation fails, the remaining cases will proceed individually in groups of 75. This structured approach is designed to manage the complexity and volume of mass arbitration claims.