What law governs the arbitration of disputes under the Bhc Multi-Unit Master Franchise Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Multi-Unit Master Franchise Agreement | (if the amount in controversy is less than $250,000 - https://www.jamsadr.com/rules-streamlined- arbitration/) or its Comprehensive Arbitration Rules and Procedures (if the amount in controversy is $250,000 or more - https://www.jamsadr.com/rules- comprehensive-arbitration/). Or, if the parties mutually agree, the dispute may be submitted to arbitration conducted by and before another mutually acceptable arbitrator. | |
| w. Choice of forum | 14.1, 14.2 | Mediation and arbitration proceedings will take place in Los Angeles County, California. Any litigation proceedings will take place in an appropriate court in California. |
| x. Choice of law | 16.13 | California law governs the arbitration of disputes under the MFA. |
Source: Item 17 — Renewal, Termination, Transfer, And Dispute Resolution (FDD pages 43–49)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, California law governs the arbitration of disputes arising from the Multi-Unit Master Franchise Agreement (MFA). This means that any arbitration proceedings related to the agreement will be interpreted and conducted in accordance with California's legal principles and statutes. This is an important consideration for prospective franchisees, as the laws of California will dictate how disputes are resolved through arbitration.
This provision ensures that there is a clear legal framework for resolving conflicts. Franchisees should familiarize themselves with California law or consult with legal counsel to understand their rights and obligations under the MFA. Knowing that California law applies can help franchisees better prepare for potential disputes and understand the arbitration process.
Typically, franchise agreements include a choice of law provision to provide clarity and predictability in dispute resolution. Specifying California law helps to avoid uncertainty and potential conflicts that could arise if different state laws were applied. Franchisees should be aware of this provision and its implications for their business relationship with Bhc.