If a Bhc dispute is not referred to mediation within the specified timeframe, what happens?

According to Bhc's 2025 Franchise Disclosure Document, if a dispute is not referred to mediation within 10 business days after the Settlement Conference took place (or should have taken place), either the franchisee or Bhc can immediately submit the dispute to binding resolution through arbitration proceedings, as outlined in section 14.2 of the agreement. This means that the opportunity for mediation is forfeited, and the dispute will proceed directly to arbitration, where a decision will be legally binding.

This provision encourages both parties to promptly engage in the mediation process once a settlement conference has concluded without resolution. By setting a firm deadline, Bhc aims to prevent delays and ensure that disputes move forward towards resolution in a timely manner. The arbitration proceedings will dictate the final outcome of the dispute, which could have significant financial and operational implications for the franchisee.

For a prospective Bhc franchisee, this highlights the importance of being prepared to engage in mediation promptly and efficiently should a dispute arise. Understanding the implications of missing the mediation deadline is crucial, as it could lead to a binding arbitration decision that may not be favorable. Franchisees should familiarize themselves with section 14.2 regarding arbitration proceedings to understand the process and potential outcomes.