Under what circumstances related to the amount in controversy will Bhc use Comprehensive Arbitration Rules and Procedures?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Mediation is a compromise negotiation and will constitute privileged communications under the law governing this Agreement. The entire mediation process will be confidential and the conduct, statements, promises, offers, views and opinions of the mediator and the parties will not be discoverable or admissible in any legal proceeding for any purpose; provided, however, that evidence which is otherwise discoverable or admissible will not be excluded from discovery or admission because of its use in the mediation. The fees charged by a mediator and any other related fees and costs will be divided equally between the parties.
14.2 Arbitration.
- (a) Except as specifically provided in sections 13.2(b) and 13.3(c) above, any Dispute between Franchisor (or its affiliated entities) and Franchisee (or its Principal Equity Operators or affiliated entities) not settled through the procedures described in sec
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, disputes between Bhc and a franchisee that are not settled through mediation will be resolved through binding arbitration. The specific arbitration rules used depend on the amount in controversy.
If the amount in dispute is $250,000 or more, Bhc will use JAMS, Inc.'s Comprehensive Arbitration Rules and Procedures. However, if the amount in controversy is less than $250,000, Bhc will use JAMS, Inc.'s Streamlined Arbitration Rules and Procedures.
It is important to note that the parties can mutually agree to use a different arbitrator than JAMS, Inc. regardless of the amount in controversy. The arbitration hearings will take place at a JAMS business location in Los Angeles County, California, or another county where Bhc's headquarters is located, unless Bhc elects to have it held at the JAMS location nearest to the franchisee's principal place of business.