factual

What is the maximum duration a party is required to mediate with Bft?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

Each Party will bear its own costs in participating in the mediation, and Franchisor and Developer will share JAMS' and the mediator's fees and costs equally.

Neither Party will be required to mediate for more than one (1) day.

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, neither party is required to mediate for more than one day. This means that if a dispute arises that cannot be resolved informally, both Bft and the franchisee are obligated to participate in mediation for a maximum of one day.

Mediation is conducted by JAMS (Judicial Arbitration and Mediation Services) using their current mediation rules and procedures, and it takes place at Bft's principal place of business in Irvine, California, or via videoconference if both parties agree. Each party bears their own costs for participating in the mediation, while the fees and costs charged by JAMS and the mediator are shared equally between Bft and the franchisee.

This one-day limit on mediation could be beneficial for franchisees by preventing drawn-out and costly mediation processes. However, it also means that if the dispute is complex, a resolution may not be reached within that single day, potentially leading to mandatory binding arbitration. Franchisees should consider the implications of this time limit and be prepared to efficiently present their case during mediation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.