Where must the Settlement Conference take place for a dispute involving Bhc?
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").
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the initial Settlement Conference to resolve disputes must occur at Bhc's principal executive office. This meeting should involve Bhc's executive officers and the franchisee's Principal Equity Operators. The purpose of this conference is to conduct a good-faith discussion and negotiation to reach a settlement. This meeting must occur within five business days after one party notifies the other that a dispute has arisen. Legal counsel is not permitted at this initial settlement conference.
Bhc can proceed to terminate the franchise 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. If a party refuses to participate in the Settlement Conference or mediation within the specified time frames, the other party can immediately begin an arbitration proceeding.
This initial step emphasizes direct communication between Bhc and its franchisees to resolve issues before they escalate. For a prospective franchisee, this means being prepared to travel to Bhc's principal executive office to engage in face-to-face negotiations. Understanding this requirement is crucial, as failure to attend the Settlement Conference can lead to immediate arbitration, potentially increasing costs and time spent resolving the dispute.