How does the Bft Franchise Agreement modify the enforcement of covenants related to post-termination restrictions as outlined in Section 13.3(A) and 13.1(B)?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Enforcement of Covenants. The first and second sentences of Section 13.3(A) of the Franchise Agreement will not apply to with respect to the post-termination restrictions in Section 13.1(B). The first sentence of Section 13.3(B) of the Franchise Agreement is hereby deleted in its entirety.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, there are modifications to the enforcement of covenants, specifically concerning post-termination restrictions, but only for franchisees operating in Washington state. The standard Franchise Agreement's Section 13.3(A), which likely details the enforcement of post-termination restrictions found in Section 13.1(B), is modified for Washington franchisees.
Specifically, the first and second sentences of Section 13.3(A) of the Franchise Agreement will not apply with respect to the post-termination restrictions in Section 13.1(B) for Bft franchisees in Washington. Additionally, the first sentence of Section 13.3(B) of the Franchise Agreement is entirely deleted for these franchisees.
This suggests that the standard enforcement mechanisms for post-termination restrictions are altered in Washington, potentially making it more difficult for Bft to enforce these restrictions against former franchisees in that state. A prospective franchisee should carefully review the specific language in Sections 13.3(A) and 13.1(B) of the Franchise Agreement, along with Washington state law, to fully understand the implications of these modifications.