Does the Bft FDD include a form of Multi-Unit Agreement as Exhibit K?
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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, Exhibit K is a Form of Multi-Unit Agreement. This means Bft offers the opportunity for franchisees to own and operate multiple franchise locations under a single agreement.
Multi-unit agreements typically involve a commitment to open a certain number of locations within a defined territory and timeframe. This can be an attractive option for individuals looking to expand their investment and operational footprint with Bft. However, it also entails a larger financial commitment and increased operational responsibilities compared to single-unit franchising.
Several exhibits and riders reference the Multi-Unit Agreement, including Exhibit L-2, which is a Multi-Unit Agreement Sourcing Fee Addendum, and state-specific riders for North Dakota, Rhode Island, Illinois, Maryland, and Minnesota. These riders modify specific sections of the Multi-Unit Agreement to comply with state franchise laws, covering aspects such as consent to jurisdiction, waivers of punitive damages and jury trials, and limitations of actions. These modifications highlight the importance of understanding the specific legal requirements in the states where the Bft franchise will operate.
Prospective franchisees should carefully review the Multi-Unit Agreement and any applicable state-specific riders with legal counsel to fully understand their rights and obligations before making a decision. Understanding the terms of the agreement, including development schedules, fees, and termination conditions, is crucial for success as a multi-unit Bft franchisee.