What happens if a Bft franchisee defaults on their lease agreement?

According to Bft's 2025 Franchise Disclosure Document, if a franchisee defaults on their lease agreement or loses the right to possess the premises where the studio is located, it constitutes a cause for termination of the franchise agreement. This is covered under Section 15.1.A.12 of the agreement. This means Bft can terminate the agreement without providing the franchisee an opportunity to cure the default.

Furthermore, Bft requires franchisees to submit their lease for written acceptance before executing it. The landlord must also provide Bft with a copy of any default notice sent to the franchisee, granting Bft the right, but not the obligation, to cure the default within five days after the franchisee's cure period expires. The premises can only be used for operating a Bft studio.

Upon termination or expiration of the franchise agreement, the franchisee must cease operating the studio, remove all signs and materials linking them to Bft, and stop using Bft's intellectual property. The franchisee is also obligated to pay all outstanding amounts to Bft and its approved suppliers, including damages, costs, and legal fees incurred by Bft due to the franchisee's default. These measures protect Bft's brand and ensure a consistent standard across all franchise locations.