Does the Bft agreement restrict a person from providing confidential information to the U.S. Securities and Exchange Commission?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, nothing in this Agreement or any other agreement with Franchisor restricts or prohibits any person from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Securities and Exchange Commission, or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation. No person needs the prior authorization of Franchisor to engage in conduct protected by the preceding sentence, and no person needs to notify Franchisor that such person has engaged in such conduct.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchise agreement does not restrict a person from providing confidential information to the U.S. Securities and Exchange Commission (SEC). The agreement explicitly states that no agreement with Bft restricts or prohibits anyone from communicating directly with, responding to inquiries from, providing testimony before, or providing confidential information to the SEC. This also includes reporting possible violations of law or regulation, filing claims, or assisting with investigations directly with a self-regulatory authority or a government agency.
This provision ensures that franchisees, employees, or any other person associated with Bft can freely report potential legal or regulatory violations without fear of reprisal from the company. It also confirms that individuals do not need prior authorization from Bft to engage in such conduct, nor are they required to notify Bft if they have done so. This protection aligns with whistleblower provisions under state or federal law.
For a prospective Bft franchisee, this is a significant assurance. It means that if they encounter any unethical or illegal practices within the franchise system, they have the right to report it to the appropriate authorities without facing legal repercussions from Bft. This promotes transparency and accountability within the franchise system, fostering a more ethical business environment.
This clause is a standard inclusion in many franchise agreements to comply with securities laws and regulations, ensuring that individuals are free to report potential wrongdoing to regulatory bodies like the SEC. It reflects Bft's commitment to legal and ethical conduct and provides franchisees with an additional layer of protection.