What happens if there are conflicting provisions between the Sourcing Fee Addendum and the Franchise Agreement for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS RIDER (this "Rider") is made and entered into by and between | BFT FRANCHISE SPV, |
|---|---|
| LLC, a Delaware limited liability company with its principal business address at 17877 Von Karman Ave., | |
| Suite 100 Irvine, CA 92614 | |
| ("Franchisor"), and, | |
| whose principal business address is | ("Franchisee"). |
| 1. | are parties to that certain Franchise Agreement dated |
| Background. Franchisor | |
| and Franchisee | |
| , 20 (the "Franchise Agreement") that has been signed concurrently | |
| with the signing of this Rider. This Rider supersedes any inconsistent or conflicting provisions of the | |
| Franchise Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the | |
| Franchise Agreement. | |
| This Rider is annexed to and forms part of the Franchise Agreement. This Rider is | |
| being signed because (a) | (b) if Franchisee is |
| an | |
| offer to sell the franchise was made | |
| in North Dakota; or | |
| domiciled in the State of North Dakota | its Franchise Agreement |
| or | |
| the Studio | |
| that Franchisee operates | |
| under | |
| is or will be operated in the State of North Dakota. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 FDD, a Rider to the Franchise Agreement is made between Bft Franchise SPV, LLC and the franchisee. This Rider supersedes any inconsistent or conflicting provisions of the Franchise Agreement. Terms not defined in this Rider have the meanings as defined in the Franchise Agreement. The Rider is annexed to and forms part of the Franchise Agreement.
This means that if there are discrepancies between the main Franchise Agreement and any state-specific Rider, the terms outlined in the Rider will take precedence. This ensures that the franchise agreement complies with specific state laws and regulations, which can vary significantly.
For a prospective Bft franchisee, this is important because it highlights that the franchise agreement is not a static document and can be modified by state-specific riders to address local legal requirements. Franchisees should carefully review any riders applicable to their state to understand how they might alter the terms of the main franchise agreement.