What happens to the remaining arbitration cases against Bft while the initial 75 arbitrations proceed?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
16.10 Grouped Arbitrations. 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, if 75 or more similar arbitration demands are filed within a 30-day period, the first group of 75 arbitrations will proceed individually. While these initial cases are underway, the remaining cases are paused, or 'stayed,' and the statutes of limitations for those cases are temporarily suspended ('tolled').
Bft aims to complete these initial 75 arbitrations within 120 days after the initial administrative conference. Following the resolution of these initial arbitrations, Bft and the franchisees are expected to participate in good-faith mediation. If this mediation does not resolve the disputes, the remaining cases will then proceed individually in groups of 75 (with a final group potentially containing fewer if the total number of remaining demands is less than 75).
It is important to note that the final award from an arbitrator in any single arbitration case will not have a preclusive effect on any other arbitration. This means that each case will be decided on its own merits, and the outcome of one case will not automatically determine the outcome of others. This grouped arbitration approach is intended to increase the efficiency of resolving a large number of similar claims, but each claim will still be considered individually.