In grouped arbitrations against Bft, are the arbitrations resolved on an individual basis?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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, even when arbitration demands are grouped for efficiency, the arbitrator must resolve each arbitration on an individual basis. This means that while Bft may consolidate similar arbitration claims into groups of no more than 75 to streamline the process, each franchisee's case will be considered and decided separately.
Specifically, the FDD outlines a process where, if 75 or more similar arbitration demands are filed within a 30-day period, the demands are organized into randomized groups. However, the arbitrator assigned to each group is required to resolve all arbitrations within that group on an individual basis. The first group of 75 arbitrations proceeds individually, while the remaining cases are stayed, and their statutes of limitations are tolled. After the initial 75 arbitrations are resolved, the parties engage in mediation. If mediation fails, the remaining cases proceed individually in groups of 75.
This approach ensures that each Bft franchisee receives individual consideration of their specific circumstances, even within a grouped arbitration setting. The FDD also explicitly states that no final award from an arbitrator in any one arbitration shall have preclusive effect in any other arbitration, reinforcing the individual nature of each resolution. This clause prevents a single arbitration outcome from automatically determining the results of other similar cases.