In resolving disputes for Bhc, how soon after notification of a dispute must executive officers and Principal Equity Operators meet?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties hereby pledge and agree that they will first attempt to resolve any dispute, claim or controversy arising out of or relating to this Agreement or any alleged breach hereof, including any claim that this Agreement or any part hereof is invalid, illegal or otherwise voidable or void (collectively, "Dispute") by first having Franchisor's executive officers and Franchisee's Principal Equity Operators meet in person within five business days after a party notifies the other party that a Dispute has arisen at Franchisor's principal executive office (without their respective legal counsel) to conduct a good faith discussion and negotiation of the issues with the express intention of arriving at a settlement ("Settlement Conference").
Franchisor may proceed to terminate this Agreement in either of the following two situations without a settlement meeting or mediation proceeding: (i) if there is any breach of this Agreement by Franchisee that may result in an immediate termination of this Agreement pursuant to section 13.2 above, or (ii) if Franchisee fails to pay any sums due Franchisor under this Agreement which may result in termination of this Agreement pursuant to section 13.3 above.
Also, if a party refuses to participate in the Settlement Conference or mediation within the respective time frames set forth in this section 14.1, the other party may immediately commence an arbitration proceeding pursuant to section 14.2 below.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, both parties must attempt to resolve disputes informally before resorting to other measures. Specifically, the executive officers of Bhc and the Principal Equity Operators of the franchisee are required to meet in person to discuss and negotiate a settlement.
This meeting must occur within five business days after one party notifies the other that a dispute has arisen. The meeting is to take place at Bhc's principal executive office. Legal counsel is not permitted to attend this initial settlement conference.
Bhc is permitted to proceed to terminate the agreement without a settlement meeting or mediation if the franchisee breaches the agreement in a way that allows for immediate termination, or if the franchisee fails to pay sums due to Bhc that could result in termination. Additionally, if either party refuses to participate in the settlement conference or mediation within the specified time frame, the other party can immediately begin an arbitration proceeding.