factual

What happens if any portion of the arbitration agreement with Bft is deemed unenforceable?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event any portion of this Section is deemed unenforceable, the remainder of this agreement to arbitrate will be enforceable.

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, if any part of the arbitration agreement is considered unenforceable, the rest of the agreement to arbitrate remains in effect. This means that even if a specific clause within the arbitration section is found to be invalid, the overall commitment to resolve disputes through arbitration is still binding.

This provision ensures that the core intention of using arbitration as a dispute resolution method is upheld as much as possible. It prevents a single unenforceable clause from nullifying the entire arbitration agreement, which could lead to litigation instead. For a prospective Bft franchisee, this means that they can expect disputes to be resolved through arbitration, even if some specific aspects of the arbitration process are later deemed invalid.

However, it's important to note that this clause doesn't specify which parts of the arbitration agreement are more critical than others. A franchisee should seek legal counsel to understand the potential implications of any clause being deemed unenforceable and how it might affect their rights and obligations under the franchise agreement. Understanding the scope and limitations of the arbitration agreement is crucial for any franchisee entering into a long-term business relationship with Bft.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.