What is the amount of the surety bond obtained by the Bft Franchisor?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | |
| Background. Franchisor and Franchisee are parties to that certain Franchise Agreement dated | |
| , 20 (the "Franchise Agreement") that has been signed concurrently | |
| with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This | |
| Rider is being signed because (a) the offer is directed into the State of Washington and is received where it | |
| is directed; or | (c) the Studio that Franchisee |
| (b) Franchisee is a resident of the State of Washington; or | |
| develops under its Franchise Agreement is or will be located or operated, wholly or partly, in the State of | |
| Washingto |
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 franchisor has obtained a surety bond in the amount of $100,000. The issuance of Bft's permit by the Washington Securities Division is contingent upon maintaining this surety bond. This coverage must be acceptable to the Administrator until all Washington franchisees have fulfilled their pre-opening obligations, including receiving all entitlements under the franchise agreement or offering circular and being open for business. Alternatively, the Administrator can issue written authorization to discontinue the bond.
This surety bond provides a level of financial protection to Bft franchisees in Washington. It ensures that Bft will fulfill its pre-opening obligations to its franchisees in that state. If Bft fails to meet these obligations, franchisees can make a claim against the bond to recover losses.
The condition tied to the Washington Securities Division indicates a specific regulatory requirement in that state, likely due to past issues or a desire to provide extra protection to franchisees. Prospective franchisees outside of Washington should confirm whether similar bonds or protections are in place in their respective states. This type of surety bond is not uncommon in franchising, especially in states with more stringent franchise regulations, as it offers an additional layer of security for franchisees during the initial stages of their business.