Does the jury trial waiver in the Bft agreement apply to counterclaims?

According to Bft's 2025 Franchise Disclosure Document, the franchise agreement includes a waiver of jury trial that applies to counterclaims. Specifically, the agreement states that the parties waive their right to a jury trial in any action, proceeding, or counterclaim, whether at law or equity, regardless of which party brings the suit. This waiver applies to any matter between the parties that arises out of or is related to the agreement, the performance of either party, and/or the developer's purchase from Bft of the development rights and/or any goods or services.

This means that a franchisee gives up the right to have a jury decide any disputes with Bft related to the franchise agreement. This includes not only initial claims but also any counterclaims that might arise during legal proceedings. This is a significant legal right, and franchisees should understand the implications before signing the agreement. Jury trial waivers are relatively common in franchise agreements, as they can lead to quicker and potentially less expensive resolution of disputes through bench trials (trials before a judge).

However, it's important to note that certain state laws may impact the enforceability of these waivers. For example, the FDD includes state-specific riders for Maryland, Minnesota, North Dakota, and Washington, which modify certain provisions of the standard agreement to comply with local franchise laws. Franchisees should carefully review any state-specific riders applicable to their location to understand how these laws may affect the jury trial waiver and other terms of the agreement. For instance, in North Dakota and Minnesota, the jury trial waiver may be deleted to the extent required by their franchise investment laws.