Under the Bhc Multi-Unit Master Franchise Agreement, can the parties mutually agree to submit a dispute to arbitration conducted by and before another mutually acceptable arbitrator?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Multi-Unit Master Franchise Agreement | (if the amount in controversy is less than $250,000 - https://www.jamsadr.com/rules-streamlined- 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 mutually agree, the dispute may be submitted to arbitration conducted by and before another mutually acceptable arbitrator. | |
| w. Choice of forum | 14.1, 14.2 | Mediation and arbitration proceedings will take place in Los Angeles County, California. Any litigation proceedings will take place in an appropriate court in California. |
| x. Choice of law | 16.13 | California law governs the arbitration of disputes under the MFA. |
Source: Item 17 — Renewal, Termination, Transfer, And Dispute Resolution (FDD pages 43–49)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, under the Multi-Unit Master Franchise Agreement, disputes can be submitted to arbitration conducted by and before another mutually acceptable arbitrator if both parties agree. Otherwise, the arbitration will follow the JAMS (Judicial Arbitration and Mediation Services) rules. If the amount in controversy is less than $250,000, the Streamlined Arbitration Rules apply. If the amount in controversy is $250,000 or more, the Comprehensive Arbitration Rules and Procedures will be used.
Mediation and arbitration proceedings will take place in Los Angeles County, California, and any litigation proceedings will occur in an appropriate court in California. California law governs the arbitration of disputes under the Multi-Unit Master Franchise Agreement.
This means that prospective Bhc franchisees have the option to negotiate with Bhc to select an arbitrator that both parties find suitable, potentially allowing for a more tailored and agreeable arbitration process. However, if no mutual agreement is reached, the standard JAMS rules will apply, with the specific rules depending on the monetary value of the dispute. Franchisees should be aware that regardless of the arbitrator, the location for mediation, arbitration, and litigation is set in California, and California law will govern the arbitration.