What sections of the Bft Franchise Agreement address the waiver of jury trials and class actions?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
The Parties expressly waive the right to have any claim or dispute brought, heard, administered, resolved, or arbitrated as a class, collective, coordinated, consolidated, and/or representative action, and neither an arbitrator nor an arbitration provider shall have any authority to hear, arbitrate, or administer any class, collective, coordinated, consolidated, and/or representative action, or to award relief to anyone but the individual in arbitration.
The Parties also expressly waive the right to seek, recover, or obtain any non-individual relief.
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, the franchise agreement contains sections addressing the waiver of jury trials and class actions. Specifically, Section H, titled "Waiver of Jury Trial," states that both parties agree to waive their right to a jury trial in any legal action related to the agreement. This waiver applies to any matter arising from the agreement, the performance of either party, and the developer's purchase of development rights, goods, or services from Bft.
Section I, titled "Waiver of Class Actions," stipulates that all proceedings related to the agreement will be conducted on an individual basis, not as part of a class action. The agreement prohibits consolidating any proceeding between the developer, their guarantors, and Bft with any other proceeding involving Bft and a third party. Both parties expressly waive the right to have any claim brought, heard, or resolved as a class action, and neither an arbitrator nor an arbitration provider has the authority to administer any class action or award relief to anyone but the individual in arbitration. The parties also waive the right to seek or obtain any non-individual relief.
These waivers mean that a Bft franchisee gives up the right to participate in a class action lawsuit against the franchisor and agrees to resolve disputes through individual actions, potentially arbitration, rather than through a jury trial. This is a common practice in franchising, intended to streamline dispute resolution and reduce the franchisor's exposure to large class action lawsuits. However, it can limit a franchisee's legal options and potentially increase their individual costs of pursuing a claim against Bft.