Under what condition regarding the number of similar arbitration demands filed does the grouped arbitration procedure apply to Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
J. Grouped Arbitrations. To the extent permitted by applicable law and notwithstanding any other provision of this Agreement, to increase efficiency of resolution, in the event 75 or more similar arbitration demands are filed within a 30-day period: (a) the Parties shall cooperate to organize the arbitration demands into randomized groups of no more than 75 demands (plus, to the extent there are fewer than 75 arbitration demands remaining, a final group consisting of the remaining demands); (b) Developers' counsel shall organize and present the grouped demands to the arbitration provider in a format as required under the JAMS Mass Arbitration Procedures & Guidelines; (c) JAMS shall assess one set of filing and administrative fees per group and shall assign one arbitrator per group, subject to any applicable disclosure and disqualification procedures available under applicable law; (d) JAMS shall set one initial administrative conference per group; (e) regardless of the grouping described above, the arbitrator shall resolve all arbitrations within a group on an individual basis; (f) the first group of 75 arbitrations shall proceed on an individual basis, while the remaining cases are stayed and applicable statutes of limitations for those cases are tolled; (g) the Parties shall use their best efforts to complete the initial 75 individual arbitrations within 120 days after the initial administrative conference, and shall engage in good-faith mediation following resolution of the initial 75 individual arbitrations; (h) if mediation is unsuccessful, the remaining cases shall proceed on an individual basis in groups of 75 cases (plus, to the extent there are fewer than 75 arbitration demands remaining, a final group consisting of the remaining demands); and (i) no final award from an arbitrator in any one arbitration shall have preclusive effect in any other arbitration. The Parties agree to cooperate in good faith to implement the above grouped approach to administration of the arbitration demands.
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, a grouped arbitration procedure may be implemented to resolve disputes more efficiently. This procedure is triggered if 75 or more similar arbitration demands are filed within a 30-day period.
When this threshold is met, Bft is required to cooperate to organize the arbitration demands into randomized groups. Each group will contain no more than 75 demands, with a final group potentially containing fewer if there are remaining demands. Bft's counsel will then present these grouped demands to the arbitration provider, following the JAMS Mass Arbitration Procedures & Guidelines.
JAMS (Judicial Arbitration and Mediation Services) will assess one set of filing and administrative fees per group and assign one arbitrator per group. The arbitrator is responsible for resolving all arbitrations within a group on an individual basis. The first group of 75 arbitrations will proceed individually, while the remaining cases are put on hold, and their statutes of limitations are suspended. Following the resolution of the initial 75 individual arbitrations, the parties are expected to participate in good-faith mediation. If mediation fails, the remaining cases will proceed individually in groups of 75.