Is the Bft Developer's affiliate also subject to Franchisor's approval for site development and operation?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
defined in Section 2.D below) that Franchisor approves for any Studio(s) it is required to conduct its Soft Opening and operate during that Development Period; and (ii) Developer notifies Franchisor of its need for such an extension no less than 30 days prior to expiration of that Development Period. The Parties agree and acknowledge that Franchisor's grant of this one-time extension under this Section will not extend, modify or otherwise affect the expiration of any of Developer's subsequent Development Periods or subsequent development obligations.
- D. Locating Sites for Studios. Despite any assistance Franchisor may provide, Developer is entirely responsible to locate and present to Franchisor proposed sites for Studios in the Development Area as necessary to comply with the Development Schedule (each a "Site"). Developer agrees to give Franchisor all information and materials it requests to assess each proposed Site as well as Developer's and its proposed affiliate's financial and operational ability to develop and operate a Studio at the proposed Site. Franchisor has the absolute right to reject any site or any affiliate (a) that does not meet Franchisor's criteria or (b) if Developer or its affiliates are not then in compliance with any existing Franchise Agreements executed pursuant to this Agreement or operating its or their Studios in compliance with the mandatory specifications, standards, operating procedures and rules that Franchisor periodically prescribes for operating Studios. Franchisor agrees to use its reasonable efforts to review and evaluate the proposed Sites within 30 days after it receives all requested information and materials. If Franchisor accepts a proposed Site, Developer (or its approved affiliate) must timely sign a separate Franchise Agreement for the Site as described in Section 2.E below.
- E. Execution of Franchise Agreements.
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's affiliate is subject to Franchisor's approval for site development and operation. The Developer is responsible for locating and presenting proposed sites for Bft studios to the Franchisor. The Franchisor requires information and materials to assess each proposed site, as well as the financial and operational ability of both the Developer and their proposed affiliate to develop and operate a Bft studio at the proposed site.
The Franchisor has the right to reject any site or affiliate if they do not meet the Franchisor's criteria or if the Developer or its affiliates are not in compliance with existing Franchise Agreements. This includes operating studios in compliance with the mandatory specifications, standards, operating procedures, and rules prescribed by Bft. The Franchisor agrees to review and evaluate the proposed sites within 30 days after receiving all requested information and materials.
If Bft accepts a proposed site, the Developer or its approved affiliate must sign a separate Franchise Agreement for the site. Furthermore, Bft may refuse to issue a Franchise Agreement if it has not approved the Developer's proposed affiliate or if the Developer has not demonstrated the operational and financial capacity to develop and operate the proposed studio to Bft's satisfaction. Compliance with all agreements and timely payment of amounts owed to Bft or its affiliates are also conditions for issuing a Franchise Agreement.