factual

Does the Bft franchisee have to comply with anti-corruption laws?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

8.8 Anti-Corruption Compliance.

  • A. Anti-Corruption Practices. Franchisee hereby represents, warrants and covenants to Franchisor and its affiliates that:
  • (1) in the performance of this Agreement, Franchisee (and, if an entity, its shareholders, affiliates, officers, directors and employees) and its business partners, if any, shall comply strictly with all applicable anti-corruption laws;
  • (2) neither Franchisee (nor, if an entity, any of its shareholders, affiliates, officers, directors or employees) nor its business partners, in connection with work or services for Franchisor, has taken or will take any actions in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of anything of value to any government official or to any other person while knowing

that all or some portion of the money or value will be offered, given or promised to a government official to influence official action, to obtain or retain business or otherwise to secure any improper advantage;

  • (3) throughout the duration of this Agreement, neither Franchisee nor any of its officers, directors, employees, business partners or shareholders is or will become a government official and neither Franchisee nor any of its shareholders, affiliates or business partners is or will be owned, directly or indirectly, in whole or in part, or controlled by any government or government official;

  • (4) Franchisee shall notify Franchisor immediately if at any time the foregoing representations and warranties shall not be true and correct.

Immediately upon receipt of such notification, Franchisor shall have the right to either unilaterally terminate this Agreement or require Franchisee to amend, at Franchisor's sole discretion, this Agreement to avoid any violation or potential violation of any applicable laws, rules and regulations;

Source: Item 23 — RECEIPTS (FDD pages 79–265)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, the franchisee must comply with all applicable anti-corruption laws. The franchisee represents, warrants, and covenants to Bft that they will adhere strictly to these laws during the agreement. This obligation extends not only to the franchisee but also to their shareholders, affiliates, officers, directors, employees, and business partners.

The franchisee must not take any actions that further an offer, payment, promise to pay, or authorization of payment of anything of value to a government official or any other person, knowing that a portion of the money will be offered to a government official to influence official action, obtain or retain business, or secure any improper advantage. Additionally, the franchisee must notify Bft immediately if any of the representations and warranties become untrue or incorrect.

If the franchisee fails to uphold these anti-corruption standards, Bft has the right to either unilaterally terminate the agreement or require the franchisee to amend the agreement to avoid any violation or potential violation of applicable laws, rules, and regulations. This highlights the importance Bft places on ethical conduct and legal compliance, and the potential consequences for franchisees who fail to meet these standards.

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.