What is the consequence if a Bft franchisee falsifies financial reports?

According to Bft's 2025 Franchise Disclosure Document, if a franchisee falsifies any financial reports or records required to be provided to Bft under the Franchise Agreement, it constitutes grounds for termination of the agreement. This means Bft has the right to end the franchise relationship if the franchisee is found to have falsified financial documents.

Termination of the Franchise Agreement carries significant consequences for the franchisee. All rights, privileges, and licenses granted by Bft to the franchisee immediately cease, and the franchisee must stop operating the studio. The franchisee is also required to remove all signs and materials that link the business to the Bft brand, and to stop using Bft's trademarks, confidential information, and system.

Furthermore, the franchisee must terminate all advertising and promotional efforts associated with Bft and cancel any assumed name registrations that contain Bft's marks. The franchisee is also obligated to pay all outstanding amounts owed to Bft and its approved suppliers. In cases of termination due to franchisee default, these sums may include damages, costs, and legal fees incurred by Bft as a result of the default. The franchisee must also adhere to the covenants not to compete as outlined in the agreement.