What constitutes a 'previous violation' for Bft regarding termination?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) Developer commits or suffers a default of: (i) a provision of this Agreement within six (6) months following a previous violation of the same provision, or (ii) its obligations under this Agreement on three (3) or more separate occasions within any 12-consecutive-month period, in either case regardless of whether Franchisor notifies Developer of the defaults or the defaults are subsequently cured.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a 'previous violation' relates to the conditions under which Bft can terminate the franchise agreement with a developer (franchisee). Specifically, if a developer violates a provision of the agreement and then violates the same provision again within six months, it is grounds for termination.
Additionally, Bft can terminate the agreement if the developer fails to meet their obligations under the agreement on three or more separate occasions within any 12-consecutive-month period. This is regardless of whether Bft notifies the developer of these defaults or whether the developer subsequently corrects them.
These terms mean that a Bft franchisee needs to be especially diligent in adhering to all aspects of the franchise agreement. Repeated violations, even if corrected, can lead to the termination of the franchise agreement. This highlights the importance of understanding and consistently complying with the terms outlined in the franchise agreement to avoid potential termination.