Does the jury trial waiver in the Bft agreement apply to all matters between the parties?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.8 WAIVER OF JURY TRIAL. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR EQUITY, REGARDLESS OF WHICH PARTY BRINGS SUIT.
THIS WAIVER SHALL APPLY TO ANY MATTER WHATSOEVER BETWEEN THE PARTIES HERETO WHICH ARISES OUT OF OR IS RELATED IN ANY WAY TO THIS AGREEMENT, THE PERFORMANCE OF EITHER PARTY, AND/OR FRANCHISEE'S PURCHASE FROM FRANCHISOR OF THE FRANCHISE AND/OR ANY GOODS OR SERVICES.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchise agreement includes a waiver of the right to a jury trial. This waiver means that both Bft and the franchisee agree to resolve any disputes through a judge rather than a jury. This waiver applies broadly to any legal action, proceeding, or counterclaim, whether based on law or equity.
The jury trial waiver extends to any matter whatsoever between Bft and the franchisee that arises out of or is related in any way to the franchise agreement. This includes disputes related to the performance of either party, the franchisee's purchase of the franchise, and any goods or services provided. This comprehensive waiver is intended to ensure that all disputes are resolved without a jury trial.
Such waivers are relatively common in franchise agreements. Franchise systems often prefer to avoid jury trials because they can be unpredictable and potentially lead to higher damage awards. By agreeing to a jury trial waiver, franchisees give up an important legal right, so they should carefully consider the implications and consult with an attorney before signing the franchise agreement.