How is 'Good Standing' defined for a Bft franchisee in relation to Co-Op voting rights?

According to Bft's 2025 Franchise Disclosure Document, a franchisee's 'Good Standing' status directly impacts their voting rights within any formed Co-Ops. If one or more Co-Ops (local, regional and/or national) are formed covering the franchisee's area, the franchisee must join and actively participate. However, the franchisee is only entitled to one vote if they are in 'Good Standing' at the time the vote is taken.

Bft defines 'Good Standing' specifically as not being in default of any obligation to Bft or any of its affiliates. This includes obligations arising from the Franchise Agreement itself, any other agreement between the franchisee and Bft (or its affiliates), the Learning Management System, or other System Standards. Therefore, a franchisee must meet all financial and operational requirements to maintain 'Good Standing' and retain their voting rights within the Co-Op.

This definition means that any breach of contract or failure to adhere to Bft's standards could result in the loss of voting privileges within the Co-Op. For a prospective franchisee, this highlights the importance of understanding and complying with all aspects of the Franchise Agreement and System Standards to maintain their ability to influence marketing-related activities conducted by the Co-Op. Franchisees should ensure they are consistently meeting all obligations to Bft to avoid jeopardizing their 'Good Standing' and voting rights.