To which organization must controversies, disputes, or claims be submitted for binding arbitration with Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
In any arbitration proceeding, each Party will be bound by the provisions of any applicable contractual or statutory limitations provision, whichever expires earlier. Each Party must submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding. Any claim which is not submitted or filed as required will be forever barred. The arbitrator may not consider any settlement discussions or offers that might have been made by any Party.
The arbitrator shall have full authority to manage any necessary exchange of information among the Parties with a view to achieving an efficient and economical resolution of the dispute. The Parties may only serve reasonable requests for documents, which must be limited to documents upon which a Party intends to rely or documents that are directly relevant and material to a significant disputed issue in the case or to the case's outcome. The document requests shall be restricted in terms of time frame, subject matter and persons or entities to which the requests pertain, and shall not include broad phraseology such as "all documents directly or indirectly related to."
The provisions of this Section are intended to benefit and bind certain third-party non-signatories. The provisions of this Section will continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement. Any provisions of this Agreement below that pertain to judicial proceedings shall be subject to the agreement to arbitrate contained in this Section.
In the event any portion of this Section is deemed unenforceable, the remainder of this agreement to arbitrate will be enforceable.
The parties to any mediation or arbitration will execute an appropriate confidentiality agreement, excepting only such disclosures and filings as are required by law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
Based on the 2025 FDD, the document does not specify a particular organization to which controversies, disputes, or claims must be submitted for binding arbitration with Bft. Item 17 discusses dispute resolution, mediation, and arbitration, but it does not name a specific arbitration organization. Instead, it outlines the procedures and conditions governing any arbitration proceeding.
Specifically, the FDD states that each party in an arbitration proceeding will be bound by any applicable contractual or statutory limitations. It also requires parties to submit any claim that would constitute a compulsory counterclaim within the same proceeding, or else that claim will be barred. The arbitrator is authorized to manage the exchange of information among the parties to ensure an efficient and economical resolution.
Furthermore, the FDD emphasizes that any agreement to arbitrate will remain in effect even after the expiration or termination of the franchise agreement. It also notes that parties involved in mediation or arbitration must execute a confidentiality agreement, with exceptions only for disclosures required by law.
Given the absence of a specified arbitration organization in the provided FDD excerpts, prospective Bft franchisees should directly ask the franchisor which arbitration services or providers are typically used or required in their franchise agreements. This information is crucial for understanding the full scope of the dispute resolution process.