Can Bft and its franchisees agree to use a videoconferencing platform for mediation or arbitration?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
All proceedings will be conducted at a suitable location chosen by the arbitrator
that is within 50 miles of Franchisor's (or its successor's or assign's, as applicable) then-current principal place of business (currently, Irvine, California), or via a videoconferencing platform, if both Parties agree. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). The interim and final awards of the arbitrator shall be final and binding upon each Party, and judgment upon the arbitrator's awards may be entered in any court of competent jurisdiction.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft and its franchisees can mutually agree to use a videoconferencing platform for arbitration proceedings. The FDD specifies that all arbitration proceedings will be conducted at a location chosen by the arbitrator within 50 miles of Bft's principal place of business in Irvine, California. However, an exception is made if both parties agree to use a videoconferencing platform instead.
This agreement provides flexibility for both Bft and its franchisees, potentially reducing travel costs and time associated with in-person arbitration. It is important to note that the decision to use a videoconferencing platform requires mutual consent, meaning neither party can unilaterally impose this option on the other. If an agreement on the location or videoconferencing cannot be reached, the arbitrator will choose a suitable location within the specified radius of Bft's headquarters.
This clause ensures that franchisees are not unduly burdened by having to travel long distances for arbitration, while also giving both parties the option to use technology to streamline the process. Prospective franchisees should consider the implications of this clause and discuss with Bft their willingness to use videoconferencing for dispute resolution to ensure a clear understanding of the process.