What action must the Bft franchisor take to terminate the Franchise Agreement with cause?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee shall be in material default in the performance of any of its obligations or materially breach any term or condition of this Agreement, in addition to Franchisor's right to terminate this Agreement, and without limiting any other rights or remedies to which Franchisor may be entitled at law or in equity, Franchisor may, at its election, immediately or at any time thereafter, and without notice to Franchisee cure such default for the account of and on behalf of Franchisee including entering upon and taking possession of the Studio for a period not to exceed one hundred
and eighty (180) consecutive days and taking, in the name of Franchisee, all other actions necessary to effect the provisions of this Agreement and any such entry or other action shall not be deemed a trespass or other illegal act, and Franchisor shall not be liable (except with respect to Franchisor's gross negligence or intentional misconduct) in any manner to Franchisee for so doing, and Franchisee shall pay the entire cost thereof to Franchisor on demand, including reasonable compensation to Franchisor for the management of the Studio.
- Franchisor's Right to Purchase the Studio. Section 15.3(I) of the Franchise Agreement is amended and supplemented to include the following:
To the extent, this Section 15.3(I) is inconsistent with RCW 19.100.180(2)(i), it is hereby deemed modified to comply with RCW 19.100.180(2)(i). Subject to applicable laws, Franchisor is required to purchase certain assets at fair market value (including goodwill in certain instances) at the time of expiration or termination of the franchise, offset by any amounts owed by the Franchisee to the Franchisor.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee is in material default of their obligations or materially breaches any term or condition of the Franchise Agreement, Bft has the right to terminate the agreement. In addition to Bft's right to terminate, and without limiting any other rights or remedies, Bft may choose to immediately or at any time thereafter cure the default without notice to the franchisee.
To cure the default, Bft can act for the account of and on behalf of the franchisee, including entering and taking possession of the studio for up to 180 consecutive days. Bft can also take any other actions necessary to enforce the provisions of the Franchise Agreement in the name of the franchisee. According to the FDD, these actions will not be considered trespass or illegal acts, and Bft will not be liable to the franchisee, except in cases of gross negligence or intentional misconduct.
The franchisee is responsible for paying the entire cost incurred by Bft to cure the default, including reasonable compensation for Bft's management of the studio. This cost is payable to Bft on demand. Furthermore, the FDD states that to the extent that Section 15.3(I) is inconsistent with RCW 19.100.180(2)(i), it is modified to comply with that law. Subject to applicable laws, Bft is required to purchase certain assets at fair market value (including goodwill in certain instances) at the time of expiration or termination of the franchise, offset by any amounts owed by the Franchisee to the Franchisor.