Does the Bhc franchise agreement allow for class action, class arbitration, or collective action?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) TO THE MAXIMUM EXTENT PERMITTED BY LAW, ALL CLAIMS BROUGHT UNDER THIS AGREEMENT WILL BE BROUGHT IN AN INDIVIDUAL CAPACITY.
THIS AGREEMENT MAY NOT BE CONSTRUED TO ALLOW OR PERMIT THE CONSOLIDATION OR JOINDER OF OTHER CLAIMS OR CONTROVERSIES INVOLVING ANY OTHER FRANCHISEES OR PERMIT SUCH CLAIMS OR CONTROVERSIES TO PROCEED AS A CLASS ACTION, CLASS ARBITRATION, COLLECTIVE ACTION, OR ANY SIMILAR REPRESENTATIVE ACTION.
NO ARBITRATOR WILL HAVE THE AUTHORITY UNDER THIS AGREEMENT TO ORDER ANY SUCH CLASS OR REPRESENTATIVE ACTION.
BY SIGNING BELOW, FRANCHISEE EXPRESSLY AGREES TO WAIVE ALL SUBSTANTIVE AND PROCEDURAL RIGHTS THAT IT MAY HAVE TO BRING AN ACTION ON A CLASS, COLLECTIVE, REPRESENTATIVE OR OTHER SIMILAR BASIS.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchise agreement stipulates that all claims must be brought in an individual capacity. The agreement explicitly states that it should not be interpreted to allow the consolidation or joining of claims involving other franchisees.
Specifically, the Bhc franchise agreement prohibits claims or controversies from proceeding as a class action, class arbitration, collective action, or any similar representative action. Furthermore, the agreement clarifies that no arbitrator has the authority to order any such class or representative action.
By signing the franchise agreement, a franchisee expressly agrees to waive all substantive and procedural rights to bring an action on a class, collective, representative, or other similar basis. This means a franchisee cannot participate in a lawsuit with other franchisees against Bhc, and must pursue any claims individually.