For a Bft franchise, what authority must the Operating Principal have?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a legal entity, such as a limited liability company, partnership, or corporation, each person who directly or indirectly owns a 10% or greater ownership in you (each, a "Guarantor") must sign and deliver to us our then-current form of Guarantee, Indemnification, and Acknowledgment (a "Guarantee"), and one of your Guarantors must be designated as an Operating Principal, who has the authority communicate with us and otherwise act on your behalf in all matters relating to your Studio.
Source: Item 1 — THE FRANCHISOR, ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, if the franchisee is a legal entity such as a limited liability company, partnership, or corporation, the Operating Principal must have the authority to communicate with Bft and act on the franchisee's behalf in all matters relating to the Bft studio. This individual must also be one of the Guarantors who directly or indirectly owns 10% or greater ownership in the franchisee's business entity.
In essence, Bft requires a designated point of contact who is both an owner and has the power to make decisions and communicate directly with the franchisor on behalf of the franchise. This ensures that Bft has a clear channel for communication and accountability within the franchise's ownership structure.
For a prospective Bft franchisee, this means that if you are setting up a business entity to own the franchise, you must designate an Operating Principal who meets the ownership and authority requirements. This individual will be responsible for all communications with Bft and must be empowered to act on behalf of the franchise in all operational and business matters.