Where must the mediation take place 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.
- (c) Mediation is a compromise negotiation and will constitute privileged communications under the law governing this Agreement.
The entire mediation process will be confidential and the conduct, statements, promises, offers, views and opinions of the mediator and the parties will not be discoverable or admissible in any legal proceeding for any purpose; provided, however, that evidence which is otherwise discoverable or admissible will not be excluded from discovery or admission because of its use in the mediation.
The fees charged by a mediator and any other related fees and costs will be divided equally between the 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 discussions, the dispute may be submitted to non-binding mediation. 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 may be required to travel to California for mediation, depending on where you and Bhc mutually agree to hold the mediation. This could involve additional travel expenses and time away from your business. It is important to note that the mediator must be a certified specialist in franchise and distribution law in California, ensuring a certain level of expertise in franchise-related disputes.
The FDD also specifies that if the dispute is not referred to mediation within 10 business days after the settlement conference, the dispute may be immediately submitted to binding resolution through arbitration proceedings. 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.
Mediation is considered a compromise negotiation and is treated as privileged communication under the agreement. The entire mediation process is confidential, and the conduct, statements, promises, offers, views, and opinions of the mediator and the parties are not discoverable or admissible in any legal proceeding. However, evidence that is otherwise discoverable or admissible will not be excluded simply because it was used in the mediation.