Where must the Settlement Conference take place between Bhc Franchisor's executive officers and Franchisee's Principal Equity Operators?
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, if a dispute arises, Bhc's executive officers and the franchisee's Principal Equity Operators must meet in person to conduct a good faith negotiation of the issues. This meeting, called a "Settlement Conference," must occur within five business days after a party notifies the other party that a dispute has arisen.
The Settlement Conference is to take place at Bhc's principal executive office. The purpose of this meeting is to try and arrive at a settlement. Legal counsel is not permitted to attend this initial Settlement Conference.
Bhc can 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 may result in termination. Additionally, if either party refuses to participate in the Settlement Conference or mediation within the specified time frames, the other party can immediately begin an arbitration proceeding.