Besides actions permitted unilaterally by the franchisor, what is required for any amendment to the Bft franchise agreement to be binding?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for those permitted to be made unilaterally by Franchisor hereunder, no amendment, change or variance from this Agreement shall be binding on either Party unless mutually agreed to by the Parties and executed by their authorized officers or agents in writing.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, outside of actions the franchisor can take on its own, any amendment, change, or variance to the franchise agreement must be mutually agreed upon by both parties. This agreement must be documented in writing and executed by authorized officers or agents of both Bft and the franchisee to be considered binding. This ensures that both parties are in accord with any modifications to the original agreement.
This requirement protects the franchisee by ensuring that Bft cannot unilaterally impose changes to the franchise agreement that could negatively impact their business. It also protects Bft by ensuring that franchisees cannot claim modifications to the agreement without proper authorization. The written requirement provides a clear record of any agreed-upon changes, reducing the potential for disputes.
This clause is a fairly standard provision in franchise agreements. It reflects the need for mutual consent in altering a legally binding contract. Prospective franchisees should carefully review the franchise agreement to understand which actions Bft can take unilaterally and ensure they are comfortable with those terms. They should also be aware of the process required for any amendments to be made and documented properly.