Does the Bft FDD specify what constitutes a 'reasonable' extension of time beyond the 90 days?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained in this Section, Franchisor will provide Developer with a onetime reasonable extension of time not to exceed 90 days to comply with its development obligations in any one of the Development Period as set forth in the Development Schedule (see Exhibit A), provided: (i) Developer has already executed a lease for, or otherwise obtained, a Site (defined in Section 2.D below) that Franchisor approves for any Studio(s) it is required to conduct its Soft Opening and operate during that Development Period; and (ii) Developer notifies Franchisor of its need for such an extension no less than 30 days prior to expiration of that Development Period. The Parties agree and acknowledge that Franchisor's grant of this one-time extension under this Section will not extend, modify or otherwise affect the expiration of any of Developer's subsequent Development Periods or subsequent development obligations.
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 franchisor may grant a one-time reasonable extension of time, not exceeding 90 days, for a developer to comply with their development obligations during any Development Period. This extension is contingent upon the developer having already secured an approved site, either through a lease or other means, for any studio they are required to open and operate during that period. Additionally, the developer must notify Bft of their need for the extension at least 30 days before the expiration of the Development Period.
The FDD specifies that the extension is 'reasonable' because it is capped at a maximum of 90 days. The document does not elaborate further on what other factors might make an extension request 'reasonable' beyond these conditions.
It is important to note that this one-time extension, if granted by Bft, does not alter or extend any subsequent Development Periods or obligations. This means that the developer must still meet all future deadlines as originally scheduled, regardless of the extension granted for a previous period. A prospective franchisee should seek clarification from Bft regarding specific circumstances that might warrant an extension and the process for requesting and documenting such a request.