What is the effect of termination by Bft on the rights granted to the developer?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Obligations of Developer upon Termination or Expiration.
Immediately upon termination or expiration of this Agreement for any reason:
(1) All rights and privileges granted by Franchisor to Developer shall immediately cease and be null and void and of no further force and effect, and all such rights and privileges shall immediately revert to Franchisor; and
(2) Developer and the Restricted Parties shall comply with the Noncompetition Restrictions set forth in Article 6 of this Agreement and all other obligations that are triggered by or, either expressly or by their nature, are intended to survive the termination or expiration of this Agreement.
Termination or expiration of this Agreement shall not affect, modify or discharge any claims, rights, causes of action or remedies, which Franchisor may have against Developer, whether under this Agreement or otherwise, for any reason whatsoever, whether such claims or rights arise before or after termination.
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, upon termination or expiration of the Development Agreement, all rights and privileges granted to the developer by Bft immediately cease and revert back to Bft. This means the developer loses the right to develop and operate Bft studios in the designated area.
Furthermore, the developer and any restricted parties must adhere to the non-competition restrictions outlined in Article 6 of the agreement. They must also fulfill any other obligations that are triggered by the termination or that are intended to survive the termination, as specified in the agreement.
However, the termination or expiration of the agreement does not impact any claims, rights, causes of action, or remedies that Bft may have against the developer. This includes any claims or rights that arose before or after the termination. This clause ensures that Bft retains the ability to pursue legal action against the developer, even after the agreement has ended.