Does the Bft Franchise Agreement include exhibits related to authorized locations?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
and, to support its request, has provided Franchisor with certain information about its experience, skills and resources (the "Application Materials"). Franchisee has independently investigated the business contemplated by this Agreement and recognizes that the nature of the business may change over time.
Franchisor is willing to grant Franchisee's request on the terms and conditions contained in this Agreement.
NOW, THEREFORE, in consideration of and reliance on the foregoing Recitals (which are incorporated herein by reference), the agreements described below, and other valuable consideration, receipt and sufficiency of which are acknowledged, the Parties agree as follows:
1. GRANT OF FRANCHISE
1.1 Grant. Franchisee agrees to, at all times, faithfully, honestly, ethically, and diligently perform its obligations under this Agreement and to use its best efforts to promote its BFT Studio (the "Studio") as described herein. Accordingly, Franchisor grants to Franchisee the non-exclusive right and license to establish and operate a single Studio, offering only the Approved Services and Approved Products and utilizing only the System and the Marks, at the location identified on Exhibit 1 or as determined in accordance with Section 1.2 below (the "Authorized Location"), in accordance with the provisions and for the Term (defined below) specified in this Agreement:
Franchisee agrees not to conduct the business of its Studio at any location other than the Authorized Location and to use the Authorized Location only for the operation of its Studio. Franchisee also agrees that, once its Studio opens for business, it will continuously operate the Studio in accordance with this Agreement for the duration of the Term.
1.2 Site Approval Process. If the Authorized Location is not identified on Exhibit 1 when Franchisee signs this Agreement, Franchisee must search for acceptable locations for the Studio within the area
identified on Exhibit 1 (the "Designated Market Area") and secure Franchisor's acceptance of the proposed location within 90 days after the Effective Date (the "Site Acceptance Period"). The Designated Market Area has been identified for the sole purpose of facilitating the orderly development of the market, and not for purposes of granting Franchisee any exclusivity or protection within the Designated Market Area. Franchisee acknowledges and agrees that Franchisor does not guarantee that Franchisee will find an acceptable site within the Designated Market Area or during the Site Acceptance Period.
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, the Franchise Agreement does include exhibits related to the authorized location. Specifically, the franchise grants the franchisee the right to operate a Bft studio at the location identified on Exhibit 1 or as determined by a specific process. The franchisee is restricted from conducting business at any location other than the authorized location.
If the authorized location is not identified on Exhibit 1 when the franchisee signs the agreement, the franchisee is responsible for finding acceptable locations within a designated market area. The franchisee must then secure Bft's acceptance of the proposed location within 90 days of the effective date of the agreement. However, Bft does not guarantee that the franchisee will find an acceptable site within the designated market area or during the site acceptance period.
Once Bft acknowledges acceptance of the authorized location and designated territory, the franchisee must obtain lawful possession of the location and open the studio according to the agreement's conditions and deadlines. Bft retains the right to modify the boundaries of the designated territory if the franchisee relocates the studio or if the population of the designated territory exceeds 50,000 at the time of a request for a successor franchise or transfer.