Does the adoption of California law circumvent jurisdictional requirements related to franchise offers or sales for Bft?

According to Bft's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by California law, but this does not circumvent jurisdictional requirements pertaining to franchise offers or sales. Specifically, the adoption of California law is not intended to satisfy any jurisdictional requirements contained in laws that are expressly directed to the offer or sale of franchises or the relationships between franchisors and franchisees. This means that while California law governs the agreement, Bft must still comply with franchise laws in any state that has specific franchise regulations related to offers and sales.

This provision ensures that Bft franchisees are protected by the specific franchise laws of their state, in addition to the general contract law of California. Franchise laws often include provisions for disclosure, registration, and franchisee rights that are designed to prevent fraud and unfair practices. By explicitly stating that the choice of California law does not circumvent these jurisdictional requirements, Bft acknowledges its responsibility to comply with these state-specific regulations.

For a prospective Bft franchisee, this clause offers some assurance that their local franchise laws will still apply, regardless of the governing law specified in the franchise agreement. It is important for franchisees to be aware of the franchise laws in their own state and to seek legal counsel to ensure that their rights are protected. This clause in the Bft franchise agreement reinforces the importance of complying with all applicable state franchise laws, providing an additional layer of protection for franchisees.