What happens if a party fails to appear or participate in the Bhc arbitration proceeding?

According to Bhc's 2025 Franchise Disclosure Document, if either party involved in an arbitration proceeding fails to appear or participate, the other party is entitled to a default judgment award. This means that if a franchisee or Bhc does not engage in the arbitration process, the arbitrator can make a decision in favor of the party that is present and participating.

This provision underscores the importance of actively engaging in the arbitration process if a dispute arises. Franchisees should understand that failing to participate can result in an unfavorable outcome, as the arbitrator may issue a default judgment based solely on the arguments and evidence presented by the participating party. This could lead to financial liabilities, specific performance orders, or other remedies as deemed appropriate by the arbitrator.

It is important to note that the arbitrator has the right to award relief, including money damages with interest, specific performance, and injunctive relief, but cannot declare any mark generic or invalid, or award punitive damages. The arbitration award is final and binding, and judgment on the award may be entered in any federal or state court having jurisdiction. Therefore, understanding the implications of non-participation is crucial for any prospective Bhc franchisee.