What section of the Bft Franchise Agreement addresses dispute resolution by arbitration or mediation?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- Mediation; Mandatory Binding Arbitration. Sections | 16.3 (Mediation) and 16.4 | (Mandatory Binding Arbitration) | supplemented by adding the following | of the Franchise Agreement are | | to the end of the Section:
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 FDD, Sections 16.3 and 16.4 of the Franchise Agreement address mediation and mandatory binding arbitration for Bft franchises. Specifically, Section 16.3 pertains to mediation, while Section 16.4 covers mandatory binding arbitration. A rider to the franchise agreement may supplement these sections.
For franchisees in Maryland or North Dakota, there are specific stipulations. In Maryland, the rider indicates that it supersedes any conflicting provisions of the Franchise Agreement. For franchisees in North Dakota, the mediation or arbitration site must be mutually agreed upon by both Bft and the franchisee, to the extent required by the North Dakota Franchise Investment Law, unless preempted by the Federal Arbitration Act.
It is important for prospective franchisees to carefully review these sections and any related riders with legal counsel to understand their rights and obligations regarding dispute resolution. Understanding the governing law, internal dispute resolution processes, and any state-specific requirements is crucial before entering into a franchise agreement with Bft.