What is the Bft Developer's obligation regarding the exploitation of Development Rights during the Term and throughout the entire Development Area?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Grant and Term. Franchisor grants Developer the Development Rights, which must be exercised in strict compliance with this Agreement. The Development Rights may be exercised from the Effective Date and, unless sooner terminated as provided herein, continuing through the earlier of (1) the date on which the last Studio, which is required to have conducted its Soft Opening (as defined in Section 2.C below) in order to satisfy the Development Schedule, conducts its Soft Opening pursuant to an executed Franchise Agreement, or (2) the last day of the last Development Period (defined in Section 2.C) (collectively, the "Term"). Developer accepts the grant of the Development Rights and agrees to, at all times, faithfully, honestly, and diligently perform its obligations under this Agreement and fully exploit the Development Rights during the Term and throughout the entire Development Area. Developer may not subcontract or delegate to any third parties any of its rights or obligations under this Agreement.
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 who is granted Development Rights must exercise them in strict compliance with the Development Agreement. The term for exercising these rights begins on the effective date and continues until the earlier of two conditions: either the soft opening of the last studio required by the Development Schedule, or the last day of the final Development Period.
The Bft developer explicitly agrees to faithfully, honestly, and diligently perform their obligations under the agreement. This includes fully exploiting the Development Rights throughout the entire Development Area during the Term.
Furthermore, the Bft developer is prohibited from subcontracting or delegating any of their rights or obligations to third parties, ensuring that the developer remains directly responsible for fulfilling the terms of the agreement.