What will the Bft Franchisor do with the remaining funds upon termination of the Fund?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Franchisor maintains the right to terminate the collection and disbursement of the Fund Contributions and the Fund. Upon termination, Franchisor will disburse the remaining funds for the purposes authorized under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchisor has the right to terminate the collection and disbursement of Fund contributions and the Fund itself. Upon termination of the Fund, Bft will disburse any remaining funds for the purposes authorized under the Franchise Agreement.
This means that if the advertising fund is terminated, Bft franchisees can expect that any money left in the fund will be used for advertising, marketing, and public relations programs as originally intended. The FDD specifies that these purposes include creating advertising materials, running promotional campaigns, sponsoring events, administering advertising programs, supporting public relations, conducting market research, and covering the administrative costs of the fund.
It is important to note that Bft has the discretion to decide how the remaining funds are spent within these authorized purposes. Franchisees do not have a right to a proportionate share of the remaining funds based on their contributions. The Franchise Agreement specifies that the fund is intended to maximize general public recognition and acceptance of the Bft system as a whole, rather than to directly benefit individual Bft studios pro rata.