What information must be included in the written notice of claim or dispute provided to Bft before initiating arbitration or litigation?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Internal Dispute Resolution.The Parties each agree that, except as set forth in Section 12.E 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.
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, before a franchisee initiates arbitration or litigation against Bft, they must provide written notice. This notice must specify, in detail, the precise nature and grounds of the claim or dispute. This requirement ensures that Bft is fully informed of the issues before formal proceedings begin, allowing an opportunity for resolution before escalating to arbitration or litigation.
This internal dispute resolution process is a common practice in franchising, intended to foster communication and potentially resolve conflicts efficiently. By requiring detailed information upfront, Bft aims to understand the franchisee's concerns thoroughly and assess the validity of the claim. This process can save both parties time and resources by encouraging early settlement or clarification of misunderstandings.
However, it's important to note that this requirement does not prevent a party from seeking injunctive relief in court for actions that could cause immediate harm to trademarks or proprietary information. This exception recognizes the need for swift action in certain situations to protect Bft's interests. Franchisees should carefully document all aspects of their claim or dispute to ensure the written notice meets the specified requirements, as failure to provide sufficient detail could potentially delay or complicate the resolution process.