What does the term 'Proceeding' refer to in the Bhc franchise agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the franchise agreement outlines dispute resolution steps. Bhc may proceed to terminate the agreement without a settlement meeting or mediation proceeding if the franchisee breaches the agreement resulting in immediate termination, or if the franchisee fails to pay sums due to Bhc that may result in termination.
Additionally, if a party refuses to participate in the Settlement Conference or mediation within the specified time frames, the other party can immediately commence an arbitration proceeding. This means that franchisees and Bhc agree to attempt to resolve disputes through good faith communication, settlement conferences, and mediation before resorting to arbitration or termination.
For a prospective Bhc franchisee, this highlights the importance of adhering to the franchise agreement terms and maintaining open communication with Bhc to avoid potential disputes and termination. Understanding these dispute resolution steps is crucial for a successful and long-term franchise relationship with Bhc.