Does the Bft FDD specify who is responsible for ensuring compliance with the Development Schedule?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer must furnish to Franchisor monthly written reports regarding Developer's progress on its compliance with the Development Schedule and in satisfaction of its other obligations under this Agreement.
D. Locating Sites for Studios. Despite any assistance Franchisor may provide, Developer is entirely responsible to locate and present to Franchisor proposed sites for Studios in the Development Area as necessary to comply with the Development Schedule (each a "Site"). Developer agrees to give Franchisor all information and materials it requests to assess each proposed Site as well as Developer's and its proposed affiliate's financial and operational ability to develop and operate a Studio at the proposed Site. Franchisor has the absolute right to reject any site or any affiliate (a) that does not meet Franchisor's criteria or (b) if Developer or its affiliates are not then in compliance with any existing Franchise Agreements executed pursuant to this Agreement or operating its or their Studios in compliance with the mandatory specifications, standards, operating procedures and rules that Franchisor periodically prescribes for operating Studios. Franchisor agrees to use its reasonable efforts to review and evaluate the proposed Sites within 30 days after it receives all requested information and materials.
C. Development Schedule. The Development Schedule is set forth on Exhibit A hereto. Each period described in the Development Schedule is a "Development Period." Developer (or its approved affiliate) must conduct its Soft Opening and operate Studios in the Development Area, each pursuant to a written franchise agreement and related agreements signed by Franchisor and a franchisee (each a "Franchise Agreement"), as necessary to satisfy the requirements of each Development Period, but Developer shall not be required to open, in total, more than the cumulative number of Studios shown for the last Development Period. To determine whether a Studio has conducted its Soft Opening for purposes of the Development Schedule, "Soft Opening" means that the respective Studio's doors are open to the general public for participating in regular classes in the physical premises of the Studio. The Development Schedule is not a representation (express or implied) by Franchisor that the Development Area can support, or that there are or will be sufficient sites for, the number of Studios specified in the Development Schedule or during any particular Development Period.
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.
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 developer is primarily responsible for ensuring compliance with the Development Schedule. The FDD states that the developer must furnish monthly written reports to Bft regarding their progress in complying with the Development Schedule and other obligations outlined in the agreement. This includes locating suitable sites for Bft studios within the designated development area.
Bft, however, retains certain rights and responsibilities related to the Development Schedule. While the developer is responsible for locating and presenting potential sites, Bft has the right to approve or reject these sites based on its criteria and the developer's compliance with existing franchise agreements. Bft also agrees to use reasonable efforts to review and evaluate proposed sites within 30 days of receiving all necessary information from the developer.
Furthermore, the Development Schedule itself is not a guarantee from Bft that the development area can support the specified number of studios. Bft relies on the developer's expertise and independent investigation to determine the feasibility of meeting the development obligations. The FDD also mentions that Bft may grant a one-time extension of up to 90 days to comply with development obligations under certain conditions, such as the developer having already secured a site approved by Bft.