If similar arbitration demands against Bft were originally processed individually before the grouping procedure started, how are further proceedings and fee assessments governed?

According to Bft's 2025 Franchise Disclosure Document, if similar arbitration demands were initially processed individually before the group arbitration procedure began, all further proceedings, including the assessment of arbitration filing or administration fees, will be governed by the procedures outlined in Section 16.10, which discusses grouped arbitrations. This means that even if some cases started separately, they will now be handled under the grouped arbitration rules to increase efficiency.

This is significant for a prospective Bft franchisee because it clarifies how disputes will be handled if a large number of similar claims arise. By grouping arbitrations, Bft aims to streamline the resolution process and potentially reduce costs. However, it's important to note that while the cases are grouped for administrative purposes, the arbitrator must still resolve each arbitration on an individual basis.

The grouped arbitration process involves organizing demands into randomized groups of no more than 75, with JAMS (Judicial Arbitration and Mediation Services) assessing one set of filing and administrative fees per group and assigning one arbitrator per group. 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 cases are resolved, the parties engage in mediation. If mediation fails, the remaining cases proceed individually in groups of 75.

This approach ensures that each franchisee's case is heard individually while still benefiting from the efficiencies of grouped administration. Franchisees should be aware that they will be responsible for their share of fees and costs, although the arbitrator may award fees and costs to the prevailing party at the conclusion of the arbitration. The document also specifies that no final award from an arbitrator in one arbitration will have preclusive effect in any other arbitration, meaning each case is decided on its own merits.