What is the consequence if a Bft franchisee fails to comply with all Applicable Laws?

According to Bft's 2025 Franchise Disclosure Document, if a franchisee's representations and warranties regarding anti-corruption practices are not true or correct, Bft has the right to either unilaterally terminate the agreement or require the franchisee to amend the agreement. This is at Bft's sole discretion, to avoid any violation or potential violation of applicable laws, rules, and regulations.

This means that a Bft franchisee must ensure strict compliance with all anti-corruption laws. This includes ensuring that neither the franchisee nor their business partners engage in offering or providing anything of value to government officials to influence official action or secure any improper advantage. Additionally, the franchisee must notify Bft immediately if any of the representations and warranties regarding anti-corruption practices are no longer true.

The potential consequences of non-compliance are severe, including possible termination of the franchise agreement. This highlights the importance of franchisees conducting business ethically and in full compliance with all applicable anti-corruption laws. It also demonstrates Bft's commitment to maintaining a high standard of legal and ethical conduct among its franchisees.

Beyond anti-corruption laws, the FDD excerpt also states that the franchisee is responsible for complying with all Applicable Laws in connection with the use of a surveillance camera. The franchisee acknowledges and agrees that its indemnification obligations under this Agreement include claims arising from or related to any breaches of privacy from Franchisee's use of any surveillance camera.