What is the deadline for commencing arbitration hearings under section 14.2 of the Bhc agreement after filing the demand for arbitration?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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 under section 14.2 must commence within six months of filing the demand for arbitration. This requirement is subject to two exceptions: first, if the arbitrator determines that exceptional circumstances justify a delay; and second, if all parties to the dispute agree to a delay.
This means that a Bhc franchisee can expect the arbitration process to move relatively quickly once initiated. The six-month deadline helps ensure that disputes are resolved in a timely manner, preventing them from dragging on and potentially harming the franchisee's business. The arbitrator has the discretion to extend the deadline if warranted by the circumstances, providing some flexibility in complex cases.
However, it's important to note that the arbitration process begins with a demand for arbitration. The time it takes to prepare and file this demand is not included in the six-month period. Franchisees should also be aware that the location of the arbitration hearings will be at the JAMS business location in Los Angeles County, California, or other county where Bhc's headquarters is then located, unless Bhc elects to have it at the JAMS business location nearest where the franchisee's principal place of business is then located.