What are the consequences if a Bft franchisee fails to comply with the non-compete covenants?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
(13) Franchisee fails to comply with the covenants not to compete as required in Article 13 herein;
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.
Franchisee shall be in default, and each of the following shall constitute good cause for termination under this Section:
- G.
Franchisee shall comply with the covenants set forth in Articles 12 and 13 of this Agreement;
In the event of termination for any default of Franchisee, such sums shall include all damages, costs and expenses, including reasonable legal fees, incurred by Franchisor as a result of the default;
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, failure to comply with non-compete covenants as required in Article 13 constitutes a default under the franchise agreement. This gives Bft the right to terminate the agreement.
Specifically, Section 15.1.A outlines conditions for termination without notice, including if the franchisee fails to comply with the non-compete covenants. Section 15.1.B states that if the franchisee is in default under the terms of the agreement and does not cure the default within thirty days of written notice from Bft, Bft may immediately terminate the agreement.
Additionally, upon termination or expiration of the agreement, the franchisee must comply with the covenants set forth in Article 13. In the event of termination for any default of the franchisee, the franchisee is liable to pay all amounts owing to Bft, including all damages, costs, and expenses, including reasonable legal fees, incurred by Bft as a result of the default.