Is a Bft franchisee in default of any obligation to the franchisor considered in 'Good Standing'?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will be entitled to one (1) vote if Franchisee is in Good Standing at the time the vote is taken.
Franchisee will be considered in "Good Standing" if it is not in default of any obligation to Franchisor or any of Franchisor's affiliates, whether arising under this Agreement or any other agreement between Franchisee and Franchisor (or any of Franchisor's affiliates), the Learning Management System or other System Standards.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee who is in default of any obligation to Bft or its affiliates is not considered in "Good Standing."
Specifically, the FDD states that a franchisee will be considered in "Good Standing" only if they are not in default of any obligation to Bft or any of its affiliates. This includes obligations arising under the Franchise Agreement, any other agreement between the franchisee and Bft, the Learning Management System, or other System Standards.
This "Good Standing" status is relevant because it determines whether a franchisee is entitled to vote in any local, regional, or national Co-Ops that the franchisee is required to join and actively participate in. Therefore, if a Bft franchisee is in default, they lose their voting rights within these cooperative organizations.