What criteria does Bft use to assess a prospective transferee's business experience and financial resources?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
f law or otherwise, sell, assign, transfer, pledge or encumber its interest in this Agreement, in the license granted hereby, in the assets of the Studio, any of its rights hereunder, in the lease for the premises at which the Studio is located, or in the control or management of the Studio (each a "Transfer"), and any purported Transfer shall be null and void. If Franchisee is a corporation, limited liability, partnership, or an individual or group of individuals, any assignment (or new issuance), directly or indirectly, occurring as a result of a single transaction or a series of transactions that alters the percentages of ownership interests reflected on Exhibit 1 to this Agreement must promptly be reported to Franchisor and is a Transfer within the meaning of this Article 14. Any proposed Transfer shall be subject to Franchisor's right of first refusal provided in Section 14.5 below.
- 14.2 Conditions for Consent of Transfer. Franchisee must provide Franchisor with all information or doc
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, when a franchisee wants to transfer their interest in the franchise, Bft assesses the prospective transferee based on several criteria. Bft will evaluate whether the transferee has good moral character and reputation, no conflicting interests, a good credit rating, and sufficient and competent business experience, aptitude, and financial resources. These qualifications must be acceptable based on Bft's then-current standards for franchisees.
To make this determination, Bft requires the franchisee to provide all information and documents requested about the proposed transfer, the transferee, and its owners. Bft conducts background and credit checks through reputable agencies and sources, including bankruptcy, criminal, and litigation histories, as well as checks with the United States Office of Foreign Assets Control and politically exposed persons (PEP) searches.
It is important to note that Bft must not unreasonably withhold consent for a proposed transfer if the prospective transferee meets the specified criteria. Additionally, the franchisee is required to pay Bft a transfer fee of $10,000 before the transfer can be approved.