factual

Does the Bft franchise agreement allow a Developer to hold the Franchisor's affiliates' members, managers, owners, directors, officers, employees, or agents personally liable in any action between the Franchisor and the Developer?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

E. No Recourse Against Nonparty Affiliates. Developer agrees that it will look only to Franchisor to perform under this Agreement. Franchisor's affiliates are not parties to this Agreement and have no obligations under it. Developer may not look to Franchisor's affiliates for performance. Developer agrees that Franchisor's and its affiliates' members, managers, owners, directors, officers, employees and agents shall not be personally liable or named as a party in any action between Franchisor or its affiliates and Developer or its affiliates or their respective owners**.**

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 agrees to look only to Bft to perform under the agreement. Bft's affiliates are not parties to the agreement and have no obligations under it. The Developer cannot seek performance from Bft's affiliates. Furthermore, the Developer agrees that neither Bft nor its affiliates' members, managers, owners, directors, officers, employees, and agents will be held personally liable or named as a party in any action between Bft or its affiliates and the Developer or its affiliates or their respective owners. This provision protects individuals associated with Bft and its affiliates from personal liability in disputes between the parties. This is a common provision in franchise agreements, designed to protect the personal assets of individuals involved in the franchise operation. Prospective franchisees should understand that they cannot pursue legal action against the individuals associated with Bft or its affiliates, but only against the Bft entity itself. This limitation of liability is a significant factor to consider when evaluating the legal and financial risks of investing in a Bft franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.