Under what two circumstances can Bhc proceed to terminate the agreement without a settlement meeting or mediation?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may proceed to terminate this Agreement in either of the following two situations without a settlement meeting or mediation proceeding: (i) if there is any breach of this Agreement by Franchisee that may result in an immediate termination of this Agreement pursuant to section 13.2 above, or (ii) if Franchisee fails to pay any sums due Franchisor under this Agreement which may result in termination of this Agreement pursuant to section 13.3 above.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc may proceed to terminate the franchise agreement without a settlement meeting or mediation in two specific situations. These circumstances involve breaches of the agreement by the franchisee that warrant immediate termination, or failure to pay sums due to Bhc.
Specifically, Bhc can bypass the settlement and mediation process (i) if the franchisee breaches the agreement in a way that allows for immediate termination as described in section 13.2 of the agreement, or (ii) if the franchisee fails to pay any amounts owed to Bhc, which could lead to termination as per section 13.3 of the agreement. These stipulations are designed to protect Bhc's interests in cases of serious franchisee misconduct or financial delinquency.
This clause highlights the importance of franchisees adhering to the terms of the franchise agreement and maintaining timely payments. Failure to do so can result in immediate termination without the opportunity for preliminary dispute resolution steps like settlement conferences or mediation, which are typically included to foster communication and attempt to resolve issues before resorting to termination or arbitration.