What happens if a Bft franchisee does not comply with the Development Schedule outlined in the Multi-Unit Agreement?

According to the 2025 Bft Franchise Disclosure Document, a franchisee with a Multi-Unit Agreement must comply with the development obligations, including the Development Schedule, to maintain development rights within the Development Area. The Development Area size varies based on the number of studios the franchisee has the right to open and operate, as well as the location and demographics of the area where the studios will be opened. The boundaries of the Development Area may be defined by zip codes, streets, landmarks, or county lines, and will be outlined in a map attached to the Multi-Unit Agreement.

If a Bft franchisee fails to comply with the Development Schedule, Bft has the right to terminate the Multi-Unit Agreement. This termination would result in the loss of any further development rights the franchisee has under that agreement. However, Bft will not modify the size of the Development Area unless there is a mutual written agreement signed by both parties.

This aspect of the agreement is important for prospective multi-unit franchisees to consider. Failing to meet the development schedule can lead to the termination of the agreement and the loss of future development rights. Franchisees should carefully review the Development Schedule and ensure they have the resources and capabilities to meet the obligations outlined in the Multi-Unit Agreement. This is a fairly standard clause in multi-unit franchise agreements, as franchisors want to ensure that franchisees are actively developing the brand within their designated areas.