Can Bft charge a Non-Compliance Fee for any material obligation under the Franchise Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- I. Non-Compliance Fee.
In addition to Franchisor's other rights under this Agreement, Franchisor may charge its then-current per day Non-Compliance Fee for each day Franchisee offers or sells unauthorized products or services from the Studio.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft has the right to charge a Non-Compliance Fee if a franchisee offers or sells unauthorized products or services from their studio. This fee is in addition to any other rights Bft has under the Franchise Agreement.
This means that if a Bft franchisee deviates from the approved list of products or services without prior authorization, they could incur a daily Non-Compliance Fee. The FDD does not specify the amount of this fee, but it indicates that it is Bft's "then-current per day Non-Compliance Fee."
This policy incentivizes franchisees to adhere strictly to Bft's approved offerings and to seek approval before introducing any new products or services. It also protects the Bft brand by ensuring consistency across all franchise locations. A prospective franchisee should inquire about the specific amount of the Non-Compliance Fee to fully understand the potential financial implications of non-compliance.