Regarding the Bft franchise agreement, what sections of the Multi-Unit Agreement are related to the waiver of jury trial and waiver of class actions?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Waiver of Jury Trial. To the extent required by the North Dakota Franchise Investment Law, Section 12.H (Waiver of Jury Trial) of the Multi-Unit Agreement is deleted.
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- Waiver of Class Actions; Limitation of Actions. The following is added to the end of Sections 12.I (Waiver of Class Actions) and 12.K (Limitation of Actions) of the Multi-Unit Agreement:
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
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- Waiver of Jury Trial; Class Actions. The following is added to the end of Sections 12.H (Waiver of Jury Trial) and 12.I (Waiver of Class Actions) of the Multi-Unit Agreement:
Nothing contained in this section shall constitute a condition, stipulation, or provision purporting to bind any person to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable.
- H. 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 DEVELOPER'S PURCHASE FROM FRANCHISOR OF THE DEVELOPMENT RIGHTS AND/OR ANY GOODS OR SERVICES.
- I. Waiver of Class Actions.
THE PARTIES AGREE THAT ALL PROCEEDINGS ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE DEVELOPMENT RIGHTS, WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-WIDE BASIS, AND THAT ANY PROCEEDING BETWEEN DEVELOPER, DEVELOPER'S GUARANTORS AND FRANCHISOR OR THEIR RESPECTIVE AFFILIATES, OFFICERS, OWNERS, OR EMPLOYEES MAY NOT BE CONSOLIDATED WITH ANY OTHER PROCEEDING BETWEEN FRANCHISOR AND ANY OTHER THIRD PARTY.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 FDD, the Bft Multi-Unit Agreement addresses the waiver of jury trials in Section 12.H and the waiver of class actions in Section 12.I. Specifically, these sections outline the agreement between the parties to waive their rights to a jury trial and to participate in class action lawsuits related to the agreement or the development rights.
Additionally, the FDD includes riders for specific states that modify these sections. For example, the rider for North Dakota states that Section 12.H (Waiver of Jury Trial) of the Multi-Unit Agreement is deleted to the extent required by the North Dakota Franchise Investment Law. Similarly, the rider for Maryland adds language to Sections 12.H (Waiver of Jury Trial) and 12.I (Waiver of Class Actions), along with Section 12.K (Limitation of Actions), specifying that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
In Illinois, the rider adds language to Sections 12.H (Waiver of Jury Trial) and 12.I (Waiver of Class Actions) stating that nothing in these sections shall waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable. These state-specific modifications highlight the importance of understanding how local laws may affect the enforceability of certain provisions in the Multi-Unit Agreement.