What is the advance written notice Bft provides to franchisees if it increases the Fund Contribution?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will be required to pay the appropriate Fund Contribution to Franchisor as described in Section 5.6 of this Agreement.
In the event Franchisor increases the Fund Contribution from what it is as of the Effective Date, Franchisor will provide at least sixty (60) days' written notice of such increase in the Fund Contribution, subject to the Marketing Expenditure Cap (as defined in Section 9.2.G).
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if Bft increases the Fund Contribution, it will provide franchisees with at least sixty (60) days' written notice of the increase. The Fund Contribution is subject to the Marketing Expenditure Cap.
This advance notice allows franchisees time to adjust their financial planning and business strategies in anticipation of the increased expense. Franchisees can assess the potential impact on their profitability and cash flow, and make necessary adjustments to pricing, marketing, or operational efficiencies.
The inclusion of the Marketing Expenditure Cap suggests that there are limits to how much the Fund Contribution can be increased, providing some level of financial predictability for franchisees. Prospective franchisees should clarify the specifics of the Marketing Expenditure Cap to fully understand the potential range of increases to the Fund Contribution.
Overall, the 60-day written notice provides a degree of transparency and allows Bft franchisees to prepare for potential changes in their financial obligations related to the Fund Contribution.