What must a Bft Developer do before signing a lease or securing possession of a site that the Franchisor has accepted?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Thereafter, once Franchisor has accepted a Site, and prior to signing a lease or otherwise securing possession of the Site, Developer (or its approved affiliate) must sign Franchisor's then-current form of Franchise Agreement (including, without limitation, all exhibits and attachments thereto) and related documents, the terms of which may differ substantially from the terms contained in the form of Franchise Agreement that Franchisor is using to grant Franchises on the Effective Date; provided, however, the Initial Franchise Fee that will be owed under each subsequent Franchise Agreement will be same amount as provided herein, unless reduced by Franchisor at its discretion. Each Franchise Agreement will govern the development and operation of the Studio at the accepted Site identified therein. Franchisor may refuse to issue and enter into a Franchise Agreement if (a) in its sole discretion, it has not approved Developer's proposed affiliate, (b) Developer has not established to Franchisor's satisfaction that it has the operational and financial capacity to develop and operate the proposed Studio, (c) Developer and its affiliates are not then in compliance with any agreements to which they are a party with Franchisor or its affiliates, (d) Developer or its affiliates have failed to pay any amounts owed to Franchisor or its affiliates during the preceding 12 months, or (e) Developer or its approved affiliates and their respective owners fail to sign and return to Franchisor the Franchise Agreement and all ancillary agreements and required fees within 15 days following Franchisor's delivery of the execution of copy of the Franchise Agreement to Developer or its approved affiliate.
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 Developer (or their approved affiliate) must sign Bft's then-current form of Franchise Agreement, including all exhibits and attachments, before signing a lease or securing possession of a site that Bft has accepted. The terms in this Franchise Agreement may differ substantially from the terms in the Franchise Agreement form used on the Effective Date of the Multi-Unit Agreement. However, the Initial Franchise Fee for each subsequent Franchise Agreement will be the same as provided in the Multi-Unit Agreement, unless Bft reduces it at its discretion.
Each Franchise Agreement will govern the development and operation of the Bft studio at the accepted site. Bft may refuse to issue and enter into a Franchise Agreement if it has not approved the Developer's proposed affiliate, if the Developer has not demonstrated the operational and financial capacity to develop and operate the studio, if the Developer and its affiliates are not in compliance with their agreements with Bft or its affiliates, if the Developer or its affiliates owe any amounts to Bft or its affiliates from the preceding 12 months, or if the Developer or its approved affiliates and their owners fail to sign and return the Franchise Agreement and all ancillary agreements and required fees within 15 days of receiving the execution copy of the Franchise Agreement from Bft.
This requirement ensures that both Bft and the Developer are aligned on the specific terms and conditions for operating a franchise at the approved location before the Developer incurs significant expenses related to securing the site. This process protects Bft's brand standards and operational procedures while also providing the Developer with a clear understanding of their obligations and rights for that particular location. The potential for refusal to issue a Franchise Agreement highlights the importance of maintaining compliance and financial stability throughout the development process.