Based on the information provided, is it possible that additional shareholder derivative lawsuits will be filed purportedly on behalf of XFI based on the same set of facts alleged in the Ayers Lawsuit and Akande Lawsuit related to Bft?

According to Bft's 2025 Franchise Disclosure Document, it is possible that additional shareholder derivative lawsuits will be filed purportedly on behalf of XFI based on the same set of facts alleged in the Ayers Lawsuit and Akande Lawsuit. The Ayers Lawsuit and Akande Lawsuit were consolidated on June 24, 2024, and are stayed pending the final resolution of the Taylor General Lawsuit and WBP Pension Fund Lawsuit.

These lawsuits, as well as the Nelson Lawsuit filed on February 10, 2025, involve allegations of breaches of fiduciary duties, mismanagement of XFI's business, waste of assets, unjust enrichment, and abuse of control and influence by certain current and former officers and directors of XFI. The plaintiffs in these shareholder derivative lawsuits seek damages, improved corporate governance, and restitution from the individual defendants.

Given the ongoing nature of the existing litigation and the specific mention that additional lawsuits are possible, prospective Bft franchisees should be aware of the potential for further legal action against XFI and its officers. This could have implications for the financial stability and reputation of the company, which could indirectly affect franchisees. It is important to stay informed about the outcomes of these lawsuits and any new developments that may arise.