What are the qualifications of the mediator required for disputes involving a Bhc franchise?
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. 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 through initial discussions, the dispute may be submitted to non-binding mediation. The mediator must be a State Bar of California Board of Legal Specialization Certified Specialist in Franchise and Distribution Law. The mediation must occur at a location in California that is mutually agreeable to both Bhc and the franchisee.
This mediation step must occur within 10 business days after the failed Settlement Conference. If mediation is not initiated within this timeframe, either party can proceed directly to binding arbitration. The mediation process itself should be completed within 60 days from the date mediation notice is first given.
The costs for the mediator are to be shared equally between Bhc and the franchisee. To ensure impartiality, the mediator is disqualified from serving as a witness, expert, or counsel for either party in the dispute or any related matters. Furthermore, the mediation process is confidential, with all communications considered privileged and inadmissible in any legal proceeding.