Does the Bft FDD specify what happens if the lease is not approved?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Developer fails to obtain Franchisor's prior written approval or consent any time such approval or consent is required by this Agreement, fails to comply with any provision of this Agreement in respect of which Franchisor is not authorized, under Section 8.A(1) above, to terminate immediately, or fails to act in good faith in carrying out the terms of this Agreement and, in any case, does not correct such failure within 30 days after delivery of Franchisor's written notice of such failure; or
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
Based on the 2025 Bft Franchise Disclosure Document, the document does not explicitly detail the consequences if a lease is not approved. The FDD does outline various termination events related to compliance failures and defaults, but it does not directly address lease approval contingencies.
However, the FDD does state that the developer must obtain the franchisor's prior written approval or consent any time such approval or consent is required by the agreement. Failure to obtain this approval or consent, or failure to act in good faith in carrying out the terms of the agreement, and not correcting such failure within 30 days after written notice from Bft, can result in termination of the agreement.
Prospective Bft franchisees should seek clarification from the franchisor regarding the specific procedures and potential outcomes related to lease approval. Understanding the conditions under which a lease might be rejected and the recourse available is crucial for mitigating potential risks and ensuring a smooth establishment process.