What is the deadline for commencing arbitration hearings for Bhc franchise disputes after filing the demand for arbitration?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) All hearings and other proceedings will take place at the JAMS business location in Los Angeles County, California, or other county where Franchisor's headquarters is then located, or if Franchisor so elects, at the JAMS business location nearest where Franchisee's principal place of business is then located.
Absent exceptional circumstances determined by the arbitrator to justify a delay or the agreement of all parties to the Dispute, the arbitration hearings under this section 14.2 must commence within six months of the filing of the demand for arbitration.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, arbitration hearings must commence within six months of filing a demand for arbitration, unless there are exceptional circumstances or an agreement to delay. This timeline applies to disputes between Bhc and its franchisees that are not resolved through initial settlement and mediation procedures. The arbitration takes place under the rules of JAMS, Inc.
This requirement ensures that disputes are addressed in a timely manner, preventing them from dragging on indefinitely. For a prospective Bhc franchisee, this means that if a dispute arises that cannot be resolved through initial steps, the arbitration process will begin relatively quickly after a formal demand is made. This can be beneficial by providing a clear timeline for resolution.
However, the arbitrator has the discretion to delay the hearings if exceptional circumstances exist, or if all parties agree to a delay. Franchisees should be aware of this flexibility, as it could potentially extend the resolution timeline. The location of the hearings will be at a JAMS location in Los Angeles County, California, or another county where Bhc's headquarters is located, unless Bhc elects to have it at the JAMS location nearest the franchisee's principal place of business.