What action must a Bft franchisee take if their representations and warranties regarding government affiliation become untrue?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) throughout the duration of this Agreement, neither Franchisee nor any of its officers, directors, employees, business partners or shareholders is or will become a government official and neither Franchisee nor any of its shareholders, affiliates or business partners is or will be owned, directly or indirectly, in whole or in part, or controlled by any government or government official;
(4) Franchisee shall notify Franchisor immediately if at any time the foregoing representations and warranties shall not be true and correct.
Immediately upon receipt of such notification, Franchisor shall have the right to either unilaterally terminate this Agreement or require Franchisee to amend, at Franchisor's sole discretion, this Agreement to avoid any violation or potential violation of any applicable laws, rules and regulations;
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee must immediately notify Bft if their representations and warranties regarding government affiliation are no longer true and correct. Specifically, the franchisee represents and warrants that neither they, nor their officers, directors, employees, business partners, or shareholders, are or will become a government official. They also warrant that they are not owned or controlled by any government or government official.
Upon receiving notification that these representations are no longer accurate, Bft has the right to either unilaterally terminate the franchise agreement or require the franchisee to amend the agreement. This amendment would be at Bft's sole discretion and designed to avoid any violation or potential violation of applicable laws, rules, and regulations.
This requirement ensures that Bft complies with anti-corruption laws and maintains ethical business practices. It also protects Bft from potential legal issues arising from a franchisee's affiliation with a government or government official. Franchisees should be aware of this obligation and ensure they remain in compliance throughout the term of the franchise agreement. Bft also requires an annual certification from the franchisee confirming the continuation of these representations and warranties.