What is the exhibit letter designation for the Sourcing Fee Addendum (Franchise Agreement) 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 Bft's 2025 Franchise Disclosure Document, the Sourcing Fee Addendum (Franchise Agreement) is designated as Exhibit L-1. This addendum is a part of the franchise agreement and outlines the specifics related to sourcing fees. Franchisees should carefully review this exhibit to understand their obligations and the franchisor's rights regarding sourcing fees.
Prospective Bft franchisees should pay close attention to Exhibit L-1, as it details the financial implications of sourcing products or services through approved channels. Understanding the terms within this addendum is crucial for budgeting and financial planning. It is also important to note that there is a separate sourcing fee addendum, Exhibit L-2, that applies to multi-unit agreements.
Bft franchisees should consult with a business advisor to fully understand the implications of the Sourcing Fee Addendum. This will help ensure they are prepared for the financial responsibilities associated with sourcing and can effectively manage their business operations within the Bft franchise system.