What happens if a principal officer of a Bft franchise is convicted of a felony?

According to Bft's 2025 Franchise Disclosure Document, the franchise agreement can be terminated without an opportunity to cure if a principal officer is convicted of a felony. Specifically, if a principal officer, director, partner, managing member, or owner who has signed a guarantee is convicted of or pleads no contest to a felony or other crime or offense that, in Bft's reasonable opinion, adversely affects the reputation of the System or the goodwill associated with the Marks, Bft has grounds for immediate termination.

This provision in the franchise agreement protects Bft's brand and reputation. A felony conviction of a principal officer could damage the public perception of the Bft franchise. The right to terminate without an opportunity to cure allows Bft to act swiftly to disassociate itself from any negative publicity or potential damage to its brand image.

For a prospective franchisee, this clause underscores the importance of ensuring that all principal officers, directors, partners, managing members, and owners maintain a clean legal record. A past or future felony conviction could jeopardize the entire franchise investment. Furthermore, the clause grants Bft some discretion, as the conviction must, in Bft's reasonable opinion, adversely affect the reputation of the System or its goodwill. Franchisees should seek clarity on what specific types of offenses Bft considers to be detrimental to the brand's reputation.