Is a Bft franchisee prohibited from offering anything of value to a government official to influence official action?
Bft Franchise · 2025 FDDAnswer 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, Bft franchisees are prohibited from offering anything of value to a government official to influence official action. The FDD states that the franchisee must comply with all applicable anti-corruption laws.
Specifically, the franchisee warrants that neither they, nor their shareholders, affiliates, officers, directors, or employees, nor their business partners, have taken or will take any actions to offer, pay, promise to pay, or authorize the payment of anything of value to any government official or other person, knowing that the money or value will be offered to a government official to influence official action or to obtain or retain business.
The franchisee must notify Bft immediately if any of these representations and warranties are no longer true and correct. Upon receiving such notification, Bft has the right to either terminate the agreement or require the franchisee to amend the agreement to avoid any violation of applicable laws, rules, and regulations. This clause ensures that Bft franchisees operate ethically and legally, in compliance with anti-corruption laws, and protects Bft from potential legal and reputational risks associated with corrupt practices.