Does the jury trial waiver in the Bft agreement apply regardless of which party brings the suit?

According to the 2025 FDD, the Bft franchise agreement includes a mutual waiver of the right to a jury trial. This waiver applies regardless of whether the franchisee or Bft brings the lawsuit. Specifically, both parties agree to waive their right to a jury trial in any action, proceeding, or counterclaim, whether based in law or equity.

This waiver extends to any matter between the parties that arises out of or is related to the franchise agreement, the performance of either party, and/or the franchisee's purchase of development rights or any goods or services from Bft. This means that a franchisee gives up the right to have a jury decide any disputes falling within these categories.

However, the FDD also includes state-specific riders that may modify this jury trial waiver. For example, the rider for North Dakota states that the jury trial waiver is deleted to the extent required by the North Dakota Franchise Investment Law. Similarly, the rider for Minnesota states that the jury trial waiver is deleted if and then only to the extent required by the Minnesota Franchises Law. Therefore, the enforceability of the jury trial waiver may depend on the franchisee's location and the specific laws of that state.

In Washington, provisions that limit the right to a jury trial may not be enforceable under the Washington Franchise Investment Protection Act. A prospective Bft franchisee should carefully review the state-specific riders and consult with legal counsel to understand the implications of the jury trial waiver in their specific jurisdiction.