What are the consequences if a Bft franchisee fails to execute a written premises lease accepted by the franchisor?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
(10) Franchisee fails to execute a written premises lease accepted by Franchisor for the operation of the Studio at the Authorized Location by the Lease Execution Deadline, unless Franchisor agrees to otherwise in writing;
(1) Failure, refusal or neglect by Franchisee to obtain Franchisor's prior written acceptance, approval or consent any time such acceptance, approval, or consent is required by this Agreement;
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 must submit the lease for the Studio to Franchisor for its written acceptance before Franchisee executes the lease for the Authorized Location.
Franchisor will not withhold its acceptance of the lease arbitrarily; however, any lease must be subject to the applicable Lease Addendum or incorporate similar terms.
- D. Subject to Applicable Laws (defined below), Franchisee must execute a written premises lease agreement accepted by Franchisor for the Authorized Location no later than six (6) months after the execution of this Agreement (the "Lease Execution Deadline")
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee's failure to execute a written premises lease accepted by Bft for the operation of the studio at the authorized location by the lease execution deadline constitutes a default, potentially leading to the termination of the franchise agreement. However, this is waived if Bft agrees otherwise in writing. The lease execution deadline is six months after the franchise agreement is signed.
Bft requires franchisees to submit their studio lease for written acceptance before the franchisee formally executes it. Bft states that it will not withhold acceptance of the lease arbitrarily, but the lease must be subject to Bft's applicable Lease Addendum or incorporate similar terms. The franchisor's acceptance of the lease is for its own purposes, and Bft makes no representation or warranty as to the quality or suitability of the lease or its terms for the franchisee's purposes. Bft advises franchisees to have any lease reviewed by their own legal counsel.
If a franchisee fails to obtain Bft's prior written acceptance, approval, or consent any time such acceptance, approval, or consent is required by the agreement, it constitutes a default. In addition to other remedies available to Bft, Bft may immediately terminate the agreement with written notice if the franchisee is in default and does not cure the default to Bft's satisfaction within 30 days after receiving written notice. However, for defaults described in Subsections (6), (7) or (8), only 10 days' prior notice is required.