Besides termination, what other rights can Bft exercise if a franchisee permits uncertified individuals to provide Approved Services?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
(14) Franchisee permits the offer or sale of products and services other than the Approved Services at the Studio in violation of the terms of this Agreement on two (2) or more occasions in any 24-month period, regardless of whether Franchisee subsequently cured the prior default(s);
B. Termination with Notice.
In addition to the provisions of Section 15.1.A, if Franchisee shall be in default under the terms of this Agreement and the default shall not be cured or remedied (to Franchisor's satisfaction) within thirty (30) days after receipt of written notice from Franchisor (or 10 days' prior notice in the event of a default that is described in Subsections (6), (7) or (8) below), in addition to all other remedies available to Franchisor at law or in equity, Franchisor may immediately terminate this Agreement on written notice to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
Based on the 2025 Bft Franchise Disclosure Document, if a franchisee permits the offer or sale of products and services other than the Approved Services at the Studio in violation of the terms of this Agreement on two (2) or more occasions in any 24-month period, regardless of whether Franchisee subsequently cured the prior default(s), Bft has grounds for default.
According to the FDD, if the franchisee is in default under the terms of the Agreement and does not remedy the default to Bft's satisfaction within thirty (30) days after receiving written notice from Bft, Bft can immediately terminate the agreement with written notice to the franchisee. However, the excerpt does not explicitly state what other rights Bft can exercise besides termination.
To fully understand Bft's rights beyond termination for this specific violation, a prospective franchisee should inquire with Bft about available remedies, such as requiring additional training for staff, imposing financial penalties, or providing closer supervision of the studio's operations. This information would be crucial in assessing the potential consequences of non-compliance and making an informed decision about investing in a Bft franchise.