What agreement does this rider modify for Bft franchisees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS RIDER (this "Rider") is made and entered into by and between | BFT FRANCHISE SPV, |
|---|---|
| LLC, a Delaware limited liability company with its principal business address at 17877 Von Karman Ave., | |
| Suite 100 Irvine, CA 92614 | |
| ("Franchisor"), and, | |
| whose principal business address is | ("Franchisee"). |
| 1. | are parties to that certain Franchise Agreement dated |
| Background. Franchisor | |
| and Franchisee | |
| , 20 (the "Franchise Agreement") that has been signed concurrently | |
| with the signing of this Rider. This Rider supersedes any inconsistent or conflicting provisions of the | |
| Franchise Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the | |
| Franchise Agreement. | |
| This Rider is annexed to and forms part of the Franchise Agreement. This Rider is | |
| being signed because (a) | (b) if Franchisee is |
| an | |
| offer to sell the franchise was made | |
| in North Dakota; or | |
| domiciled in the State of North Dakota | its Franchise Agreement |
| or | |
| the Studio | |
| that Franchisee operates | |
| under | |
| is or will be operated in the State of North Dakota. |
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, the rider modifies the Franchise Agreement between Bft Franchise SPV, LLC, and the franchisee. The rider is signed concurrently with the Franchise Agreement and is annexed to it, forming a part of the agreement. The rider serves to supersede any inconsistent or conflicting provisions within the original Franchise Agreement, ensuring that the terms of the rider take precedence in specific situations. The terms defined in the Franchise Agreement also apply to the rider unless otherwise specified.
The FDD excerpts indicate that the specific reasons for signing the rider vary depending on the franchisee's location or circumstances. For instance, a rider might be necessary if the offer to sell the franchise was made in North Dakota, or if the franchisee is domiciled or will operate their studio in North Dakota. Similarly, riders are used for franchisees in Maryland, Washington, and New York, based on residency, studio location, or where the franchise offer was made or accepted. In Rhode Island, the rider is required if any offering or sales activity related to the Franchise Agreement occurred there, or if the franchisee is a resident or will operate their studio there.
For prospective Bft franchisees, it's crucial to understand that the Franchise Agreement is not a static document. Riders can be added to address specific legal or regulatory requirements in different states. This ensures that the franchise operation complies with local laws. Franchisees should carefully review any riders attached to their Franchise Agreement to understand how these modifications affect their rights and obligations. Consulting with a franchise attorney is advisable to fully grasp the implications of these riders and how they might impact the franchisee's business operations.