What happens if a Bft franchisee makes an unauthorized transfer of the franchise?

According to the 2025 Bft Franchise Disclosure Document, if a franchisee or its owners undertake an unauthorized direct or indirect transfer, or attempt or purport to transfer, or fail or refuse to transfer the franchise or the interest in the franchise of a deceased or disabled controlling owner as required, it constitutes grounds for termination of the Franchise Agreement.

This means that Bft has the right to terminate the franchise agreement if the franchisee attempts to transfer ownership or control of the franchise without the franchisor's approval or if they fail to transfer the franchise as required in the event of death or disability of a controlling owner. This provision protects Bft's interests by ensuring that the brand and system are only operated by approved individuals or entities.

For a prospective Bft franchisee, this highlights the importance of understanding and adhering to the transfer provisions outlined in the franchise agreement. Any desired transfer of ownership or control must be done in accordance with the agreement's terms and with Bft's explicit consent. Failure to comply can result in the termination of the franchise and loss of the business.