Does the waiver of class actions prevent the parties from participating in a class-wide settlement of claims related to Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything else in this Agreement, this Section does not prevent the Parties from participating in a class wide, collective, and/or representative settlement of claims.
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, while the agreement generally includes a waiver of class actions, it does not prevent parties from participating in a class-wide settlement of claims. This means that even though franchisees typically agree to pursue claims individually, they are still able to join or be part of a settlement that resolves claims on a class-wide basis. This provision offers a potential benefit to franchisees, allowing them to take advantage of any class-wide settlements that may arise, despite the individual action requirements in the standard agreement.
This exception to the waiver of class actions provides franchisees with a safety net. It allows them to benefit from potential large-scale resolutions of disputes that could be more advantageous than pursuing individual claims. The clause ensures that franchisees do not miss out on opportunities for compensation or resolution that arise from class-wide settlements.
It is important for prospective Bft franchisees to understand the scope and limitations of this clause. While it allows participation in settlements, it does not necessarily guarantee any specific outcome or compensation. Franchisees should consult with legal counsel to fully understand their rights and options in the event of a dispute, and to assess the potential benefits and risks of participating in a class-wide settlement.