What information must be included in the written notice of a claim or dispute before initiating arbitration or litigation against Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
16.2 Internal Dispute Resolution. The Parties each agree that, except as set forth in Section 16.5 below, before it (or any of its parents, affiliates, or subsidiaries, or their respective owners, officers, directors, employees, or representatives) initiates an arbitration or litigation against the other Party (or any of the other Party's parents, affiliates, or subsidiaries, or their respective owners, officers, directors, employees or representatives), the Party initiating arbitration or litigation will provide the other Party with written notice of the underlying claim or dispute specifying, in detail, the precise nature and grounds of the claim or dispute.
Within thirty (30) days after delivery of such claim or dispute, the Parties will use good faith efforts to discuss and resolve the claim or dispute informally for a reasonable period which shall be no more than sixty (60) days unless mutually extended by the Parties.
The Parties must personally participate in the informal dispute resolution conference.
The statute of limitations and any arbitration filing fee deadlines shall be tolled while the Parties engage in the internal dispute resolution process described in this Section.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, before initiating arbitration or litigation against Bft, a franchisee must provide written notice that specifies, in detail, the precise nature and grounds of the claim or dispute. This requirement applies to both Bft and the franchisee, including their respective parents, affiliates, subsidiaries, owners, officers, directors, employees, or representatives. This initial step is part of an internal dispute resolution process that both parties must attempt before moving to more formal proceedings.
This internal dispute resolution process requires the parties to use good faith efforts to discuss and resolve the claim or dispute informally for a reasonable period, which should be no more than 60 days, unless mutually extended. Both parties must personally participate in this informal dispute resolution conference. During this time, the statute of limitations and any arbitration filing fee deadlines are tolled, meaning they are temporarily paused to allow for the resolution process to take place without either party losing their right to pursue the claim later.
This process is designed to encourage early resolution of disputes and potentially avoid the costs and time associated with arbitration or litigation. By requiring detailed written notice and good faith efforts to resolve the issue informally, Bft aims to foster a collaborative approach to problem-solving between the franchisor and franchisee. However, it's important to note that this internal dispute resolution process does not prevent either party from seeking injunctive or other equitable relief in court if they believe there is a risk of loss or damage to trademarks, proprietary information, or systems.
For a prospective Bft franchisee, this means that if a dispute arises, they must first follow the outlined internal dispute resolution steps before pursuing arbitration or litigation. Failing to provide the required written notice with sufficient detail could potentially delay or negatively impact their ability to pursue their claim. Franchisees should ensure they document all communications and efforts made during the informal resolution process to demonstrate their good faith participation.