What details must a Franchisee include in an offer relating to an interest in the Franchisee or the Bft Studio?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
14.1 Franchisor's Consent Required. All rights and interests of Franchisee arising from this Agreement are personal to Franchisee and except as otherwise provided in this Article 14, Franchisee shall not, without Franchisor's prior written consent, voluntarily or involuntarily, by operation of 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 m
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, a franchisee is required to report to Bft if there are any changes to the ownership interests. Specifically, if the franchisee is a corporation, limited liability company, 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 the Franchise Agreement must be promptly reported to Bft.
This means that if a franchisee plans to sell, assign, transfer, pledge, or encumber their interest in the franchise agreement, the license granted, the assets of the studio, rights under the agreement, the studio lease, or control/management of the studio, they must first obtain written consent from Bft. This requirement ensures that Bft maintains control over who operates its franchises and can assess the qualifications and suitability of potential new owners or investors.
For a prospective Bft franchisee, this underscores the importance of understanding the terms of the franchise agreement related to transferability and ownership changes. It highlights that selling or transferring any part of the business requires Bft's approval, which is a common practice in franchising to protect the brand and maintain consistent standards across all locations. Franchisees should carefully review Exhibit 1 of the Franchise Agreement to fully understand how ownership interests are defined and what triggers the reporting requirement to Bft.