Under what circumstances might the Bhc arbitrator delay the arbitration hearings?

According to Bhc's 2025 Franchise Disclosure Document, arbitration hearings must typically commence within six months of filing a demand for arbitration. However, the arbitrator has the discretion to delay the hearings if there are exceptional circumstances that justify a delay. Additionally, a delay is permissible if all parties involved in the dispute agree to it.

This clause provides some flexibility in scheduling arbitration hearings, acknowledging that unforeseen events or mutual agreements may necessitate adjustments to the timeline. For a prospective Bhc franchisee, this means that while there is an expectation for a relatively prompt resolution of disputes through arbitration, there are mechanisms in place to accommodate legitimate reasons for delay.

It is important for franchisees to understand what might constitute "exceptional circumstances" in the eyes of an arbitrator. While the FDD does not define this term, it generally refers to situations that are unusual, unexpected, and beyond the control of the parties involved. Examples could include serious illness of a key witness, natural disasters, or significant legal developments that require further consideration. Franchisees should be prepared to present a strong case to the arbitrator if they seek a delay based on exceptional circumstances.

Overall, this provision aims to balance the need for timely dispute resolution with the recognition that flexibility is sometimes necessary. Franchisees should familiarize themselves with the arbitration rules and procedures to understand their rights and obligations in the arbitration process.