Does a Bft franchisee need to notify the franchisor after engaging in conduct protected under whistleblower provisions?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, nothing in this Agreement or any other agreement with Franchisor restricts or prohibits any person from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Securities and Exchange Commission, or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation. No person needs the prior authorization of Franchisor to engage in conduct protected by the preceding sentence, and no person needs to notify Franchisor that such person has engaged in such conduct.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 55–56)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee is not required to notify Bft if they engage in conduct protected by whistleblower provisions. This includes initiating communications, responding to inquiries, providing testimony, sharing confidential information, reporting potential legal violations, filing claims, or assisting with investigations involving regulatory or government entities like the U.S. Securities and Exchange Commission.
This policy ensures that franchisees can freely report concerns or violations without fear of retaliation or needing prior approval from Bft. It aligns with federal and state laws protecting whistleblowers, offering franchisees a channel to raise issues without jeopardizing their franchise agreement.
This protection extends to all agreements with Bft, reinforcing the franchisee's right to communicate with regulatory bodies without needing authorization or informing Bft beforehand. This promotes transparency and accountability within the Bft franchise system.