What are the consequences if a Bft franchisee fails to comply with obligations under Section 17.6?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
(15) Franchisee fails to comply with its obligations under Section 17.6 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.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, if a franchisee fails to comply with their obligations under Section 17.6 of the franchise agreement, it constitutes a default under the agreement. This failure to comply is explicitly listed as a cause for termination of the franchise agreement.
In addition to termination, Bft may provide a 30-day written notice to cure the default. However, the specific consequences and the nature of obligations under Section 17.6 are not detailed in the provided excerpts.
Upon termination or expiration of the agreement, all rights granted to the franchisee cease, and the franchisee must stop operating the studio, remove all branding, and cease using Bft's intellectual property. The franchisee is also obligated to pay all outstanding amounts to Bft and its suppliers, including damages and legal fees resulting from the default. Furthermore, the franchisee must adhere to non-compete covenants outlined in the agreement.