Before initiating arbitration or litigation against Bft, what must the initiating party provide to the other party?
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 initiating arbitration or litigation, the initiating party must provide the other party with written notice. This notice must detail the precise nature and grounds of the claim or dispute. This requirement applies to Bft, its parents, affiliates, or subsidiaries, as well as their respective owners, officers, directors, employees, or representatives, before initiating any arbitration or litigation against the other party.
This initial step is part of Bft's internal dispute resolution process, which aims to resolve issues informally before escalating to more formal and costly methods like arbitration or litigation. The written notice serves as a formal communication, ensuring that both parties are aware of the specific issues at hand and have an opportunity to address them.
For a prospective Bft franchisee, this means that if they have a dispute with Bft, they must first provide this written notice before starting arbitration or litigation. This process encourages open communication and may potentially lead to a resolution without the need for further legal action, saving time and expenses for both parties. However, it's important to note that this requirement does not apply to actions seeking injunctive relief, as outlined in Section 12.E of the franchise agreement.