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Under what circumstances related to the amount in controversy will Bhc use JAMS Streamlined Arbitration Rules and Procedures?

Bhc Franchise · 2025 FDD

Answer 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 section 14.1 above, or any determination of the scope or applicability of this agreement to arbitrate, will be resolved through binding arbitration by and before JAMS, Inc. ("JAMS"), in accordance with its Streamlined Arbitration Rules and Procedures (if the amount in controversy is less than $250,000 - https://www.jamsadr.com/rulesstreamlined-arbitration/) or its Comprehensive Arbitration Rules and Procedures (if the amount in controversy is $250,000 or more - https://www.jamsadr.com/rules-comprehensive-arbitration/), or if the parties in dispute mutually agree, through binding arbitration by any other mutually agreeable arbitrator. It is explicitly agreed by both of the parties hereto that (i) no arbitration of any Dispute may be commenced except in accordance with this section 14.2 and (ii) any question regarding this section 14.2, including its existence,

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 master franchisee) that are not settled through mediation will be resolved through binding arbitration by JAMS, Inc. The specific rules applied depend on the amount in controversy.

Bhc will use JAMS Streamlined Arbitration Rules and Procedures if the amount in controversy is less than $250,000. If the amount in controversy is $250,000 or more, Bhc will use JAMS Comprehensive Arbitration Rules and Procedures. However, the parties can mutually agree to use a different arbitrator.

Arbitration hearings will be held at the JAMS business location in Los Angeles County, California, or the county where Bhc's headquarters is located. Alternatively, if Bhc chooses, the hearings can be held at the JAMS business location nearest to the franchisee's principal place of business. Unless there are exceptional circumstances or an agreement to delay, arbitration hearings must begin within six months of filing the demand for arbitration.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.