What is the exhibit letter designation for the Form of General Release in the Bft FDD?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
I have received a disclosure document dated March 14, 2025, that included the following Exhibits:
Exhibit A Form of Franchise Agreement and Exhibits Exhibit H State Specific Addenda Exhibit B List of State Agents for Service of Process and State Administrators Exhibit I List of Franchisees Exhibit C Financial Statements Exhibit J List of Franchisees That Left System Exhibit D Guaranty of Performance Exhibit K Form of Multi-Unit Agreement Exhibit E Statement of Prospective Franchisee Exhibit L-1 Form of Sourcing Fee Addendum (Franchise Agreement) Exhibit F Table of Contents of Manual Exhibit L-2 Form of Sourcing Fee Addendum (Multi-Unit Agreement) Exhibit G Form of General Release Exhibit M Receipts
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, the Form of General Release is designated as Exhibit G. This exhibit likely contains the standard release form that franchisees may be required to sign under certain circumstances, such as when transferring ownership, terminating the franchise agreement, or settling disputes with Bft. Franchisees should carefully review this form with legal counsel to understand the full scope of the release and its potential impact on their rights and obligations.
The inclusion of a general release as an exhibit in the FDD is a common practice in franchising. It allows prospective franchisees to review the terms of the release before investing in the franchise. The General Release included in Exhibit G sets forth the entire agreement and understanding of the parties and any other agreements are waived and canceled. The agreement is binding upon each of the parties and their respective heirs, administrators, personal representatives, successors, and assigns.
It is important to note that any general release provided by Bft would not apply to any liability under the Maryland Franchise Registration and Disclosure Law, the Minnesota Franchise Act, or the Washington Franchise Investment Protection Act, and the rules adopted thereunder. This means that even if a franchisee signs a general release, they may still have legal recourse under these state franchise laws.
Prospective Bft franchisees should pay close attention to the conditions under which they might be asked to sign a general release and seek legal advice to fully understand their rights and obligations. Understanding the implications of Exhibit G is a crucial part of the due diligence process before investing in a Bft franchise.