According to the addendum to lease, who is considered a third-party beneficiary for Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord and Tenant, intending that BFT Franchise SPV, LLC, a Delaware limited liability company, ("Franchisor") (and its successors and assigns) be a third-party beneficiary of this Addendum, agree as follows:
(1) Tenant may display the trademarks, service marks and other commercial symbols owned by Franchisor and used to identify the service and/or products offered at the Studio, including the name "BFT," the Studio design and image developed and owned by Franchisor, as it currently exists and as it may be revised and further developed by Franchisor from time to time, and certain associated logos in accordance with the specifications required by Franchisor, subject only to the provisions of applicable law and in accordance with provisions in the Lease no less favorable than those applied to other tenants of Landlord;
(2) Tenant shall not, and the Landlord shall not permit Tenant to, sublease or assign all or any part of the Lease or the Premises, or extend the term or renew the Lease, without Franchisor's prior written consent;
(3) Landlord shall concurrently provide Franchisor with a copy of any written default notice sent to Tenant and thereupon grant Franchisor the right (but not the obligation) to cure any deficiency or default under the Lease, should Tenant fail to do so, within five (5) days after the expiration of the period in which Tenant may cure the default;
(4) The Premises shall be used only for the operation of a BFT Studio;
(5) Tenant may, without Landlord's consent (but subject to providing Landlord with written notice thereof), at any time assign this Lease or sublease the whole or any part of the Premises to Franchisor or any successor, subsidiary or affiliate of Franchisor;
(6) In the event of an assignment of the Lease to Franchisor as described in (6) above, Franchisor may further assign this Lease, subject to Landlord's consent, such consent not to be unreasonably withheld based on the remaining obligations of assignee under the Lease, to a duly authorized franchisee of Franchisor, and thereupon Franchisor shall be released from all further liability under the Lease;
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, BFT Franchise SPV, LLC (the Franchisor) is considered a third-party beneficiary in the lease addendum between the landlord and the tenant (franchisee). This designation grants Bft specific rights and protections under the lease agreement, even though Bft is not a direct party to the lease.
As a third-party beneficiary, Bft benefits from several provisions outlined in the addendum. These include the right to ensure the franchisee displays Bft's trademarks and commercial symbols, the ability to control subleasing or assignment of the lease, and the opportunity to cure any default by the franchisee under the lease. The landlord must also provide Bft with copies of any default notices sent to the franchisee. These stipulations ensure that the Bft brand and system are protected and that Bft has some recourse if the franchisee fails to meet their lease obligations.
This arrangement is beneficial for Bft as it allows them to maintain brand consistency and operational standards at the franchise location. It also provides a safety net, allowing Bft to step in and resolve lease issues, potentially preventing disruption to the franchise's operations. For a prospective franchisee, this means that Bft has a vested interest in the success of their studio and has mechanisms in place to support them, but it also means the franchisee's control over their leased location is subject to Bft's oversight and intervention under certain circumstances.