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

According to Bhc's 2025 Franchise Disclosure Document, if either party does not appear or participate in the arbitration process, the other party is entitled to a default judgment award. This means that if a Bhc franchisee or Bhc itself fails to engage in the arbitration, the arbitrator can issue a ruling in favor of the party that does participate.

This clause encourages both parties to actively participate in the arbitration process, as failure to do so can result in an unfavorable outcome. The arbitration award will be considered final and binding, and it can be enforced in any federal or state court with jurisdiction. This underscores the importance of taking the arbitration process seriously and ensuring active participation.

This is a fairly standard clause in franchise agreements, intended to prevent parties from obstructing dispute resolution by simply refusing to engage. It ensures that disputes can be resolved even if one party is uncooperative, providing a clear path to resolution for Bhc franchisees and the franchisor.