Does the Bft franchise agreement prevent parties from participating in a classwide settlement of claims?

According to the 2025 Bft Franchise Disclosure Document, the franchise agreement does not prevent parties from participating in a classwide settlement of claims. While the agreement includes a waiver of class actions, it explicitly states an exception.

Specifically, the Bft franchise agreement states that all proceedings related to the agreement or studio operations will be conducted on an individual basis, not a class-wide basis. It also specifies that proceedings between the franchisee, their guarantors, and Bft (or their affiliates, officers, owners, or employees) cannot be consolidated with other proceedings between Bft and any third party. The parties waive their right to have claims brought, heard, or resolved as a class action, and arbitrators are not authorized to hear such actions or award relief to anyone but the individual in arbitration. The parties also waive the right to seek non-individual relief.

However, the Bft franchise agreement includes a crucial exception to the class action waiver. It explicitly states that the waiver does not prevent the parties from participating in a classwide, collective, and/or representative settlement of claims. This means that while franchisees cannot initiate or participate in class action lawsuits against Bft, they are not barred from joining or benefiting from a class settlement if one is reached.

This provision offers a degree of protection to Bft franchisees. While they give up the right to sue Bft as part of a class, they retain the ability to benefit from any settlements that may arise from class actions initiated by others. This is a somewhat unusual clause, as many franchise agreements strictly prohibit any form of class action participation.