What law governs all matters relating to Bft arbitration?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
16.1 Governing Law. Franchisor and Franchisee agree that all matters relating to arbitration will be governed by the substantive and procedural provisions of the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.), which they acknowledge and agree will supersede any conflicting provisions of any state's laws relating to arbitration.
Except to the extent governed by the Federal Arbitration Act, the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C.
Sections 1051et seq.), or other applicable federal laws, this Agreement and any other agreement between Franchisor (or its parents, affiliates, and subsidiaries) and Franchisee (or its parents, affiliates, and subsidiaries, if applicable), and the rights granted and relationships created thereunder, shall be governed by the internal laws of the State of California, without regard to its conflicts of laws rules, except that the provisions regarding competitive activities shall be interpreted and enforced in accordance with the laws of the state in which the Studio is located.
The Parties further acknowledge and agree that the adoption of California law in this Section is not intended to circumvent or, in any manner, satisfy any jurisdictional requirements contained in any such laws that are expressly and specifically directed to the offer or sale of franchises or the relationships between franchisors and franchisees.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, all matters relating to arbitration are governed by the substantive and procedural provisions of the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Bft and the franchisee acknowledge that this federal law supersedes any conflicting state laws relating to arbitration. This means that the arbitration process will be conducted according to federal guidelines, ensuring a consistent legal framework regardless of the franchisee's location.
This clause is significant for prospective Bft franchisees because it establishes a clear legal standard for resolving disputes through arbitration. By referencing the Federal Arbitration Act, the agreement aims to provide a predictable and enforceable process. Franchisees should be aware of the implications of this clause, as it dictates the rules and procedures that will govern any arbitration proceedings involving Bft.
While the Federal Arbitration Act generally applies, the franchise agreement also specifies that the internal laws of the State of California govern the agreement, except for the provisions regarding competitive activities, which are interpreted and enforced in accordance with the laws of the state where the studio is located. This adoption of California law does not circumvent any jurisdictional requirements related to the offer or sale of franchises or the franchisor-franchisee relationship.