Is a Bft franchisee eligible to acquire a successor franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
3.2 Successor Franchise. Subject to this Section, Franchisee will be eligible to acquire one (1) separate and consecutive successor franchise for an additional ten (10) year term (a "Successor Franchise").
To acquire the Successor Franchise:
- A.
Prior to expiration of the Term, Franchisee shall execute Franchisor's then-current form of franchise agreement for BFT Studios, modified as necessary to reflect that the franchise granted therein is a Successor Franchise (the "Successor Franchise Agreement").
The provisions of the Successor Franchise Agreement may differ from and shall supersede this Agreement in all respects, including changes in royalty and advertising fees, except that Franchisee shall pay the Successor Franchise Fee (as defined in Section 3.2.F below) instead of the Initial Franchise Fee (as defined in Section 5.1 below).
Franchisee's failure or refusal to execute and return the Successor Franchise Agreement and Successor Franchise Fee to Franchisor within thirty (30) days after delivery of the Successor Franchise Agreement to Franchisee shall constitute Franchisee's election not to acquire the Successor Franchise;
- B.
Franchisee shall demonstrate that it has the right to remain in possession of the Authorized Location for the duration of the term of the Successor Franchise, or that it has been able to secure and develop an alternative site acceptable to Franchisor;
- C.
In consideration of the grant of the Successor Franchise, Franchisee shall execute a general release in the form and substance satisfactory to Franchisor, releasing any and all claims Franchisee and its related parties may have against Franchisor and its affiliates, and their respective owners, officers, directors, employees, agents, successors and assigns;
- D.
Franchisee shall have completed, at Franchisee's expense, such renovation and modernization of its Studio, including the interior and exterior of the building, grounds, leasehold improvements, signs, furnishings, fixtures, equipment, surveillance cameras, and decor as Franchisor reasonably requires so the Studio conforms with the then-current System Standards;
- E.
During the Term, Franchisee shall have substantially complied with all of the provisions of this Agreement and all other agreements with Franchisor and vendors to the Studio, and Franchisee and
its affiliates shall be in compliance with this Agreement and all other agreements between them and Franchisor both on the date of the notice described in Section 3.2.G below and at the expiration of the Term;
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee is eligible to acquire a successor franchise for an additional ten-year term, subject to certain conditions. The initial franchise agreement term is for ten years, and the franchisee has the option to renew this agreement for another ten-year term if they meet specific requirements. This provides an opportunity for franchisees to continue operating their Bft studio beyond the initial term, offering long-term business potential.
To acquire a successor franchise, the franchisee must execute Bft's then-current form of franchise agreement, which will be modified to reflect that it is a successor franchise agreement. This new agreement may have different terms than the original, including changes in royalty and advertising fees. The franchisee will also need to pay a successor franchise fee instead of the initial franchise fee. Failure to execute and return the successor franchise agreement within thirty days of receiving it constitutes an election not to acquire the successor franchise.
Additionally, the franchisee must demonstrate the right to remain in possession of the authorized location for the duration of the successor franchise term or secure an alternative site acceptable to Bft. They must also execute a general release, satisfactory to Bft, releasing any claims against the franchisor. The franchisee is responsible for renovating and modernizing the studio to meet the then-current system standards, including interior and exterior updates, leasehold improvements, and equipment upgrades.
Finally, the franchisee must have substantially complied with all provisions of the existing franchise agreement and other agreements with Bft and its vendors during the term. Compliance must be maintained both at the time of notice and at the expiration of the term. These conditions ensure that only franchisees who have operated their Bft studios successfully and in accordance with the franchise agreement are eligible for a successor franchise.