Does the Bft Franchise Agreement allow the franchisee to terminate the agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
However, with respect to franchises governed by Minnesota law, Franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.
If Franchisee shall be in material default in the performance of any of its obligations or materially breach any term or condition of this Agreement, in addition to Franchisor's right to terminate this Agreement, and without limiting any other rights or remedies to which Franchisor may be entitled at law or in equity, Franchisor may, at its election, immediately or at any time thereafter, and without notice to Franchisee cure such default for the account of and on behalf of Franchisee including entering upon and taking possession of the Studio for a period not to exceed one hundred
and eighty (180) consecutive days and taking, in the name of Franchisee, all other actions necessary to effect the provisions of this Agreement and any such entry or other action shall not be deemed a trespass or other illegal act, and Franchisor shall not be liable (except with respect to Franchisor's gross negligence or intentional misconduct) in any manner to Franchisee for so doing, and Franchisee shall pay the entire cost thereof to Franchisor on demand, including reasonable compensation to Franchisor for the management of the Studio.
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 state whether a franchisee can terminate the agreement. However, it does mention conditions under which Bft as the franchisor can terminate the agreement. Specifically, in the state of Minnesota, Bft must provide 90 days' notice of termination (with 60 days to cure) except in certain specified cases.
Additionally, the FDD includes information regarding Bft's right to cure franchisee defaults. If a franchisee is in material default or breaches the agreement, Bft can cure the default on behalf of the franchisee. This includes taking possession of the studio for up to 180 days to ensure compliance with the agreement. The franchisee is then responsible for covering the costs incurred by Bft during this process.
Given the lack of explicit information on franchisee termination rights, it is important that a prospective Bft franchisee ask the franchisor about the conditions under which they can terminate the Franchise Agreement. Understanding these conditions is crucial for making an informed decision about investing in a Bft franchise.