Is a Bft franchisee required to obtain franchisor approval before transferring the franchise?

According to Bft's 2025 Franchise Disclosure Document, Item 17 discusses the conditions for franchisor approval of transfer. Specifically, a sentence is added to the end of Section 14.2, titled "Conditions for Approval of Transfer," of the Franchise Agreement. This addition stipulates that, to the extent required by applicable law, no assignment will be made except to an assignee who, in Bft's good faith judgment, is willing and financially able to assume Bft's obligations under the agreement.

This means that while the franchisee has the right to transfer the franchise, Bft retains the right to ensure that the potential assignee meets certain criteria. The prospective franchisee must be willing and financially capable of fulfilling the obligations outlined in the Franchise Agreement. This provision protects Bft by ensuring that any new franchisee is qualified to maintain the standards and financial stability of the franchise system.

It is important to note the phrase "to the extent required by applicable law," which suggests that the specific requirements for transfer and the franchisor's approval may vary based on the laws of the franchisee's jurisdiction. Prospective franchisees should consult the state-specific addenda and seek legal counsel to understand the full scope of transfer requirements in their specific state. This ensures compliance with all applicable regulations and protects the franchisee's rights during the transfer process.