Does the expiration or termination of the Bft agreement impact the continued existence of any Franchise Agreements that are already fully executed?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Expiration or termination of this Agreement does not impact the continued existence of any Franchise Agreements that are, as of such time, already fully executed unless, in the case of termination, the grounds for termination are also bases for termination under the Franchise Agreements and such Franchise Agreements are expressly terminated.
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, the expiration or termination of the Franchise Agreement generally does not affect the existence of already fully executed Franchise Agreements. However, there is an exception: if the termination is based on grounds that also allow for termination under those existing Franchise Agreements, and Bft expressly terminates them, then the existing agreements may be impacted.
This means that a Bft franchisee's existing franchise agreements will remain in effect even if the main agreement expires or is terminated, providing a level of security and continuity for their business operations. The exception to this rule protects Bft in situations where the franchisee has violated the terms of multiple agreements.
It is important for prospective Bft franchisees to understand the specific conditions under which their Franchise Agreements could be terminated, as outlined in the agreement. This includes understanding what actions or failures could lead to termination and ensuring compliance with all terms to maintain the validity of their franchise agreements.