Where must the mediation take place for Bhc dispute resolution?
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), Master 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.
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 and cannot be settled through initial settlement conferences, mediation may be pursued. The mediation must be conducted by a State Bar of California Board of Legal Specialization Certified Specialist in Franchise and Distribution Law. The location for the mediation must be in California and mutually agreeable to both Bhc and the franchisee.
This means that as a prospective Bhc franchisee, you should be aware that any formal mediation will take place in California, regardless of where your franchise is located. This could involve travel expenses and logistical considerations if your business is not based in California.
It is also important to note that if mediation is not pursued within 10 business days after the settlement conference, either party can proceed directly to binding arbitration. The cost of the mediator is to be shared equally between Bhc and the franchisee. Therefore, understanding the dispute resolution process is crucial before entering into a franchise agreement with Bhc.