Under what circumstances related to the amount in controversy will Bhc use JAMS Comprehensive Arbitration Rules and Procedures?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
romise 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 (or their affiliated entities) that are not resolved through initial dispute resolution steps will be settled through binding arbitration by JAMS, Inc. The specific rules applied depend on the amount in controversy.
If the amount in controversy is $250,000 or more, JAMS Comprehensive Arbitration Rules and Procedures will be used. If the amount in controversy is less than $250,000, JAMS Streamlined Arbitration Rules and Procedures will be used instead. However, both parties can mutually agree to use a different arbitrator altogether.
This means that a Bhc franchisee could face more complex and potentially costly arbitration proceedings if the dispute involves a significant financial amount. It is important for prospective franchisees to understand these arbitration rules and their implications, as they dictate the process for resolving legal disputes with Bhc.