How does Bft define a repeated default that leads to termination without a cure opportunity?

According to Bft's 2025 Franchise Disclosure Document, Bft can terminate the franchise agreement without providing an opportunity to cure if the developer defaults on a provision of the agreement within six months of a previous violation of the same provision. Bft can also terminate the agreement without a cure opportunity if the developer defaults on their obligations under the agreement on three or more separate occasions within any 12-consecutive-month period. This applies regardless of whether Bft notifies the developer of the defaults or whether the defaults are subsequently cured.

This means that a Bft franchisee needs to be especially vigilant about compliance with all aspects of the franchise agreement. Even if a franchisee corrects a mistake, repeated instances of the same or any default within a short time frame can lead to termination of the agreement. This is a stricter standard than many franchises, which usually allow a cure period for most violations.

This policy underscores the importance of a franchisee's thorough understanding of the franchise agreement and consistent adherence to its terms. A prospective Bft franchisee should carefully consider their ability to maintain operational discipline and avoid repeated errors before investing in the franchise.