What document does the Sourcing Fee Addendum supersede if there are conflicting provisions with the Bft Multi-Unit Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
TO FOLLOW]*
IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the effective date of the Multi-Unit Agreement.
BFT FRANCHISE SPV, LLC, a Delaware limited liability company [NAME OF DEVELOPER] Capacity:
RIDER TO THE BFT FRANCHISE SPV, LLC MULTI-UNIT AGREEMENT FOR USE IN MINNESOTA
| THIS RIDER (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 | ("Developer"). |
| 1. | dated |
| Background. |
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 Rider is used to address any inconsistencies between the Multi-Unit Agreement and the Sourcing Fee Addendum. Specifically, the Rider supersedes any conflicting provisions within the Multi-Unit Agreement. This ensures that the terms of the Rider take precedence over any contradictory terms in the original Multi-Unit Agreement. The Rider also clarifies that any terms not defined within the Rider itself will have the same meanings as defined in the Multi-Unit Agreement. This maintains consistency and avoids confusion in interpreting the agreement.
This structure is important for prospective Bft multi-unit franchisees as it clarifies the relationship between the core agreement and any addenda. Franchisees should pay close attention to any Riders attached to their Multi-Unit Agreement, as these Riders can modify or override the original terms. Understanding which document takes precedence in case of conflict is crucial for compliance and avoiding potential disputes with Bft.
For example, the FDD includes several exhibits, including Exhibit L-2, which is the Form of Sourcing Fee Addendum for the Multi-Unit Agreement. Additionally, there are state-specific riders that may be attached to the Multi-Unit Agreement, such as those for Maryland, North Dakota, Minnesota, and New York. These state-specific riders address specific legal requirements or conditions within those states and also supersede conflicting provisions of the Multi-Unit Agreement. Therefore, franchisees need to carefully review all addenda and riders to fully understand their rights and obligations under the Bft franchise agreement.