What must a Bft franchisee do if they receive a notice from a governmental agency regarding compliance with applicable laws?

According to Bft's 2025 Franchise Disclosure Document, a franchisee must immediately provide Bft with a copy of any notice they receive from any person or state, local, or governmental agency pertaining to compliance with any applicable laws. This includes notices regarding any pending or threatened audit, investigation, or similar proceeding against the franchisee by such an authority. This requirement ensures that Bft is aware of any potential legal or compliance issues that could affect the franchise operation.

This obligation extends to all applicable laws related to the ownership, development, and operation of the Bft studio. These laws include requirements related to accessibility, protection of personally identifiable information, having trained staff during operating hours for life-saving procedures, having life-saving and first aid equipment on the premises, and the form and content of membership agreements. It is the franchisee's sole responsibility to investigate and comply with these applicable laws in the jurisdiction where their studio is located.

By requiring franchisees to promptly report any compliance-related notices, Bft aims to maintain consistent standards and protect its brand reputation. This allows Bft to offer support and guidance to the franchisee, potentially mitigating any negative impact from non-compliance. It also enables Bft to stay informed about regulatory changes and trends that could affect the entire franchise system, ensuring proactive adaptation and compliance across all locations.