What is the exhibit letter designation for the Statement of Prospective Franchisee 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 Statement of Prospective Franchisee is designated as Exhibit E. This exhibit is a crucial part of the franchising process, as it requires prospective franchisees to acknowledge certain aspects of their understanding and intentions regarding the franchise.
Bft uses this statement to ensure that franchisees confirm they have been advised to discuss the franchise opportunity with existing franchisees before making any binding commitments or payments. This step aims to prevent misunderstandings and verify that no legal violations have occurred during the franchise sales process. By signing this statement, the prospective franchisee assures Bft that the information provided is accurate and that they understand the obligations and opportunities associated with owning a Bft studio.
However, it's important to note that the requirement to complete the Statement of Prospective Franchisee may vary depending on the franchisee's state of residence. For instance, residents of certain states like California, Hawaii, Illinois, Indiana, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, or Wisconsin may not be required to complete the statement due to state franchise registration and disclosure laws. Additionally, residents of Maryland or Washington are specifically instructed not to sign the statement under certain conditions, indicating specific legal considerations in those states. Therefore, prospective Bft franchisees should carefully review the instructions and any state-specific addenda to determine their obligations regarding this statement.