Are there any exceptions to the Bhc arbitration agreement?

Based on the 2025 FDD, Bhc outlines a dispute resolution process that includes initial steps and mediation. However, Bhc may proceed to terminate the agreement without a settlement meeting or mediation in two specific situations. These exceptions occur (i) if there is any breach of the Franchise Agreement by the Franchisee that may result in an immediate termination of this Agreement pursuant to section 13.2, or (ii) if Franchisee fails to pay any sums due Bhc under this Agreement which may result in termination of this Agreement pursuant to section 13.3.

Additionally, if either party refuses to participate in the Settlement Conference or mediation within the specified time frames outlined in section 14.1, the other party has the right to immediately commence an arbitration proceeding as described in section 14.2. This clause ensures that disputes are addressed promptly and that neither party can unduly delay the resolution process.

These exceptions to the initial dispute resolution steps are important for prospective franchisees to understand, as they define the circumstances under which Bhc can bypass mediation and proceed directly to termination or arbitration. Franchisees should be aware of these conditions to avoid potential breaches or payment defaults that could lead to immediate termination of the agreement.