What is the maximum number of days allowed for the completion of mediation proceedings following the notice of mediation for a Bhc franchise dispute?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If the parties are unable to settle the Dispute at the Settlement Conference, then within 10 business days after the date the Settlement Conference took place (or should have taken place), Franchisee and Franchisor may submit the dispute to non-binding mediation conducted by and before a mediator who is a State Bar of California Board of Legal Specialization Certified Specialist in Franchise and Distribution Law at a location in California mutually agreeable to both parties.
If the Dispute is not referred to mediation within 10 business days after the Settlement Conference took place (or should have taken place), the Dispute may be immediately submitted to binding resolution through arbitration proceedings pursuant to section 14.2 below.
Any mediation proceedings should be completed within 60 days following the date either party first gives notice of mediation.
The fees and expenses of the mediator will be shared equally by the parties.
The mediator will be disqualified as a witness, expert, or counsel for any party with respect to the Dispute and any related matter.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a dispute arises that cannot be settled at the initial settlement conference, either the franchisee or franchisor can submit the dispute to non-binding mediation. This mediation must be conducted by a State Bar of California Board of Legal Specialization Certified Specialist in Franchise and Distribution Law, and the location must be mutually agreeable to both parties and should occur within 10 business days after the settlement conference.
The document specifies that any mediation proceedings should be completed within 60 days following the date either party first gives notice of mediation. This means that from the date the notice of mediation is given, the mediation process cannot exceed 60 days. The fees and expenses of the mediator will be shared equally by Bhc and the franchisee.
This structured timeline ensures that disputes are addressed promptly, preventing them from lingering and potentially causing further damage to the franchise relationship. It also provides a clear framework for the mediation process, which can help to facilitate a resolution. Franchisees should be aware of these timelines and procedures to ensure they can effectively address any disputes that may arise.