What are the consequences if a Bft franchisee loses the right to possess the premises, other than defaulting on the lease?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
(12) Franchisee defaults under the lease agreement or otherwise loses the right to possess the premises at the location at which the Studio is located;
15.3 Obligations of Franchisee upon Termination or Expiration. Immediately upon termination or expiration of this Agreement for any reason:
A.
All rights, privileges and licenses granted by Franchisor to Franchisee shall immediately cease and be null and void and of no further force and effect, and all such rights, privileges and licenses shall immediately revert to Franchisor;
- B.
Franchisee shall cease operating the Studio, and shall immediately, at its own expense, remove and cease using or displaying all signs, obliterate or remove all letterheads, labels or any other item or form of identification that would in any way link or associate Franchisee, its goods and/or services with Franchisor, and shall immediately cease to use, in any manner, the Marks, Confidential Information, System and any other intellectual property of Franchisor or its affiliates;
- C.
Franchisee shall immediately terminate all advertising and promotional efforts and any other act that would in any way indicate that Franchisee is or was ever an authorized BFT Studio franchisee;
- D.
Franchisee shall cancel any assumed name of Franchisee or equivalent registration that contains any Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within five (5) days after termination or expiration of this Agreement;
- F.
Franchisee shall pay all amounts owing to Franchisor and its approved suppliers under this Agreement and otherwise in connection with the Studio.
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;
- G.
Franchisee shall comply with the covenants set forth in Articles 12 and 13 of this Agreement;
K. Termination or expiration of this Agreement shall not affect, modify or discharge any claims, rights, causes of action or remedies, which Franchisor may have against Franchisee, whether under this Agreement or otherwise, for any reason whatsoever, whether such claims or rights arise before or after termination.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, if a franchisee loses the right to possess their studio premises for reasons other than defaulting on the lease agreement, it constitutes a default under the franchise agreement. This situation allows Bft to terminate the agreement with written notice to the franchisee.
Upon termination, all rights and licenses granted to the franchisee by Bft immediately cease, and the franchisee must stop operating the studio. The franchisee is obligated to remove all signs and materials that associate the business with the Bft brand, and discontinue using Bft's trademarks, confidential information, and system. Additionally, the franchisee must terminate all advertising efforts that indicate they are a Bft franchisee and cancel any assumed names or registrations containing Bft's trademarks, providing evidence of compliance to Bft within five days.
Furthermore, the franchisee must pay all outstanding amounts owed to Bft and its approved suppliers. This includes damages, costs, and legal fees incurred by Bft due to the franchisee's default. The franchisee must also adhere to the non-compete covenants outlined in the agreement. However, termination or expiration of the agreement does not impact any claims, rights, or remedies Bft may have against the franchisee, whether these arise before or after the termination.