What is the dependency for the Bft Franchisor to discontinue the surety bond?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS RIDER is made and entered into by and between | BFT FRANCHISE SPV, LLC, a |
|---|---|
| Delaware limited liability company with | its principal business address at 17877 Von Karman Ave., Suite |
| 100 Irvine, CA 92614 ("Franchisor"), and, whose | |
| principal business address is | ("Franchisee"). |
| 1. | |
| Background. Franchisor and Franchisee are parties to that certain Franchise Agreement dated | |
| , 20 (the "Franchise Agreement") that has been signed concurrently | |
| with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This | |
| Rider is being signed because (a) the offer is directed into the State of Washington and is received where it | |
| is directed; or | (c) the Studio that Franchisee |
| (b) Franchisee is a resident of the State of Washington; or | |
| develops under its Franchise Agreement is or will be located or operated, wholly or partly, in the State of | |
| Washingto |
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, the franchisor has a $100,000 surety bond. The Washington Securities Division requires Bft to maintain this bond until certain conditions are met. Specifically, Bft must maintain the surety bond until either all Washington franchisees have received all pre-opening obligations they are entitled to under the franchise agreement or offering circular and are open for business, or the Administrator issues written authorization to discontinue the bond.
For a prospective franchisee in Washington, this means that Bft has secured a surety bond to protect their investment during the initial phase of setting up their franchise. This bond ensures that Bft fulfills its pre-opening obligations, such as providing initial training and other support outlined in the franchise agreement. If Bft fails to meet these obligations, the franchisee may be able to make a claim against the surety bond.
The surety bond requirement is specific to Washington State and is intended to provide additional protection to franchisees in that state. The condition (a) focuses on Bft fulfilling its obligations to franchisees, while condition (b) provides an alternative path for Bft to discontinue the bond if the Administrator provides written authorization. This ensures that the bond remains in place until franchisees are successfully established or the regulator deems it no longer necessary. Prospective franchisees outside of Washington should note that this surety bond may not apply to them, and they should investigate similar protections in their own state.