Are there any exceptions to the internal dispute resolution process required by Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
16.5 Other Proceedings (Right to Injunctive Relief). Nothing in this Agreement, including the provisions of Sections 16.2 through 16.4, bars a Party's right to seek and obtain in any court of competent jurisdiction injunctive or other equitable relief against actual or threatened conduct that it believes is likely to cause loss or damage to its trademarks (including the Marks), its proprietary information, or its systems (including the System), in each case, under customary equity rules, including applicable rules for obtaining restraining orders and injunctions.
Each Party agrees that the other may obtain such injunctive relief in addition to such further or other relief as may be available at law or in equity.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, there are specific exceptions to the requirement that disputes undergo internal resolution before formal action. Section 16.5 outlines that nothing in the agreement, including the dispute resolution procedures in Sections 16.2 through 16.4, prevents either party from seeking injunctive or other equitable relief in court.
This exception applies specifically to situations where Bft or the franchisee believes there is a risk of loss or damage to Bft's trademarks, proprietary information, or systems. This means that Bft can bypass the internal dispute resolution and mediation steps if they believe immediate court intervention is necessary to protect their brand or operational methods.
For a prospective franchisee, this means that while Bft generally requires an attempt at internal dispute resolution and mediation, Bft retains the right to seek immediate legal remedies under certain circumstances, potentially expediting legal action and its associated costs. It is important for franchisees to understand the circumstances under which Bft might pursue such action and to be prepared for the possibility of a more rapid legal intervention than the standard dispute resolution process might suggest.