What is the Bft Franchisor's right if a tenant defaults under the Lease?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Landlord shall concurrently provide Franchisor with a copy of any written default notice sent to Tenant and thereupon grant Franchisor the right (but not the obligation) to cure any deficiency or default under the Lease, should Tenant fail to do so, within five (5) days after the expiration of the period in which Tenant may cure the default;
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, if a franchisee (tenant) defaults on their lease, the landlord must provide Bft with a copy of any written default notice sent to the tenant. Following this, Bft has the right, but not the obligation, to cure any deficiency or default under the lease. Bft has five days after the expiration of the period in which the tenant may cure the default to take action.
This provision protects Bft by giving it the opportunity to ensure that a location continues to operate as a Bft studio, even if the franchisee is struggling. By curing the default, Bft can maintain its brand presence and avoid the disruption of a studio closure. This also allows Bft to potentially find a new franchisee for the location if necessary.
For a prospective Bft franchisee, this clause offers some reassurance that Bft is invested in the success and continuity of its franchise locations. However, it's important to note that Bft is not obligated to cure the default, and the franchisee remains primarily responsible for fulfilling the terms of their lease. Franchisees should still carefully consider their financial capabilities and the terms of the lease agreement before signing.