Before initiating arbitration or litigation against Bft, what is a franchisee required to do?

According to Bft's 2025 Franchise Disclosure Document, before a franchisee initiates arbitration or litigation against Bft, they must first provide Bft with written notice of the claim or dispute. This notice must specify in detail the precise nature and grounds for the claim or dispute. This requirement applies to the franchisee and any of its related entities, including parents, affiliates, or subsidiaries, as well as their respective owners, officers, directors, employees, or representatives. This initial step is part of Bft's internal dispute resolution process.

This requirement for written notice is designed to encourage an attempt at resolving disputes internally before escalating to more formal and costly processes like arbitration or litigation. By providing detailed information about the claim, Bft has an opportunity to assess the issue, respond, and potentially reach a resolution that avoids further legal action. This can save both parties time and money, and potentially preserve the business relationship.

However, this requirement does not apply in all situations. According to the FDD, there are exceptions as set forth in Section 16.5, though the details of those exceptions are not provided in the excerpt. A prospective franchisee should carefully review Section 16.5 of the Franchise Agreement to understand the circumstances under which this internal dispute resolution process may not be required before initiating arbitration or litigation.