Can the parties mutually agree to submit a dispute to arbitration conducted by and before another mutually acceptable arbitrator under the Bhc Multi-Unit Master Franchise Agreement?

According to Bhc's 2025 Franchise Disclosure Document, under the Multi-Unit Master Franchise Agreement, Bhc and the franchisee can mutually agree to submit a dispute to arbitration conducted by and before another mutually acceptable arbitrator. This provides flexibility in resolving disputes, allowing both parties to find an arbitrator that suits their specific needs and preferences.

Typically, franchise agreements specify a particular arbitration process or organization, such as JAMS, to handle disputes. The Bhc agreement outlines that disputes involving less than $250,000 will use JAMS Streamlined Arbitration Rules, while disputes of $250,000 or more will use JAMS Comprehensive Arbitration Rules. However, the option for both parties to agree on an alternative arbitrator offers a way to potentially reduce costs, expedite the process, or find an arbitrator with specific expertise relevant to the dispute.

For a prospective Bhc franchisee, this clause offers a degree of control over the dispute resolution process. While the standard JAMS arbitration rules apply, the ability to mutually agree on a different arbitrator provides an opportunity to tailor the arbitration to the specific circumstances of the dispute. This could be beneficial if the franchisee believes that an alternative arbitrator would be more impartial or have a better understanding of the issues involved. However, it's important to note that reaching a mutual agreement on an alternative arbitrator may require negotiation and compromise between both parties.