What constitutes 'performing under this Agreement' for a Bft franchisee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
1.1 Grant. Franchisee agrees to, at all times, faithfully, honestly, ethically, and diligently perform its obligations under this Agreement and to use its best efforts to promote its BFT Studio (the "Studio") as described herein. Accordingly, Franchisor grants to Franchisee the non-exclusive right and license to establish and operate a single Studio, offering only the Approved Services and Approved Products and utilizing only the System and the Marks, at the location identified on Exhibit 1 or as determined in accordance with Section 1.2 below (the "Authorized Location"), in accordance with the provisions and for the Term (defined below) specified in this Agreement:
Franchisee agrees not to conduct the business of its Studio at any location other than the Authorized Location and to use the Authorized Location only for the operation of its Studio. Franchisee also agrees that, once its Studio opens for business, it will continuously operate the Studio in accordance with this Agreement for the duration of the Term.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 FDD, a Bft franchisee's performance under the Franchise Agreement involves several key obligations. These include diligently promoting their Bft studio, offering only approved services and products, and utilizing the Bft system and trademarks at the authorized location. The franchisee must continuously operate the studio in accordance with the agreement throughout its term. Compliance with the agreement is also evaluated if the franchisee seeks to acquire a Successor Franchise Agreement.
Maintaining the studio's image and adhering to operating standards are critical aspects of a franchisee's performance. Franchisees must comply with all requirements outlined in the agreement and the System Standards, ensuring the studio's appearance and operations meet Bft's expectations. Bft retains the right to inspect the studio at any reasonable time to assess compliance, including examining the premises, interviewing employees and customers, and using mystery shoppers. The franchisee is responsible for staffing the studio with qualified personnel who exhibit traits that promote customer satisfaction and goodwill.
Additional performance expectations include engaging individuals of high character and ability, acting ethically in all dealings related to the Bft brand, and ensuring staff are adequately trained. Franchisees must also adhere to non-solicitation covenants, both during and after the term of the agreement, to protect Bft's customer base and vendor relationships. Furthermore, franchisees are responsible for keeping the studio updated and renovated to meet current system standards, potentially incurring significant capital expenditures to comply with these requirements.