What is the Bft franchisee's obligation regarding locating sites for studios in the Development Area?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for locating and presenting to us proposed sites for Studios in the Development Area. We will use reasonable efforts to review and evaluate the proposed sites within 30 days after we receive all requested information and materials to evaluate the site. We will approve the proposed site for any Studio if it meets our thencurrent standards. If we accept a proposed site, you (or your affiliate) must timely sign a separate Franchise Agreement for the site. Each Studio you timely open and commence operating under our then-current form of franchise agreement will be operated: (i) from a distinct site located within the Development Area; and (ii) within its own Designated Territory that we will define once the site for that Studio has been approved.
As long as you are in compliance with your Multi-Unit Agreement, we will not operate, or grant a license to a third-party to operate, during the term of your Multi-Unit Agreement, a Studio located within the Development Area, and we will not grant anyone else the right to develop Studios within the Development Area, subject to our reservation of rights below.
You must comply with your development obligations under the Multi-Unit Agreement, including your Development Schedule, in order to maintain your development rights within the Development Area. If you do not comply with your Development Schedule, we may terminate your Multi-Unit Agreement and any further development rights you have under that agreement. Otherwise, we will not modify the size of your Development Area except by mutual written agreement signed by both parties.
Source: Item 12 — TERRITORY (FDD pages 50–54)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees with a Multi-Unit Agreement are responsible for finding and suggesting potential locations for their studios within their designated Development Area. Bft will then review these proposed sites, aiming to do so within 30 days of receiving all necessary information. The franchisor will approve a site if it meets their current standards.
If Bft approves a proposed site, the franchisee (or an affiliate) must then sign a separate Franchise Agreement for that specific location. Each studio must be located within the Development Area and operate within its own Designated Territory, which Bft will define upon site approval. As long as the franchisee adheres to the Multi-Unit Agreement, Bft will not operate or license others to operate a studio within the Development Area during the agreement's term.
To maintain development rights within the Development Area, franchisees must meet their development obligations, including adhering to the Development Schedule. Failure to comply with the Development Schedule may result in the termination of the Multi-Unit Agreement and any further development rights. The size of the Development Area will not be modified unless both parties agree in writing.