What agreements must Bft franchisees and its affiliates be in compliance with to satisfy the conditions outlined in Section 3.2.G and at the expiration of the term?

According to Bft's 2025 Franchise Disclosure Document, to be eligible to acquire a Successor Franchise, a Bft franchisee and its affiliates must be in compliance with the existing Franchise Agreement and all other agreements between them and Bft. This compliance must be demonstrated both on the date of the written notice of the franchisee's desire to acquire a Successor Franchise, which must be given to Bft no less than 90 days or more than 180 days before the expiration of the current term, and at the actual expiration of the current franchise term.

This requirement means that a franchisee cannot have any outstanding breaches or defaults under the Franchise Agreement or any other agreements with Bft, such as vendor agreements or financing arrangements, at either of these critical junctures. Failure to maintain compliance could jeopardize the franchisee's opportunity to renew their franchise for an additional ten-year term.

For a prospective Bft franchisee, this underscores the importance of diligently adhering to all terms and conditions outlined in the Franchise Agreement and any related agreements. Maintaining open communication with Bft and promptly addressing any potential compliance issues will be crucial to ensuring eligibility for a Successor Franchise and the continued operation of their Bft studio beyond the initial term.