What happens to a transferred Bft studio's contribution to the Development Schedule if it ceases to be operated as a Bft studio?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If, during the Term, Developer transfers a Studio in accordance with the transferred Studio's Franchise Agreement, the transferred Studio shall continue to be counted in determining Developer's compliance with the Development Schedule so long as it continues to be operated as a Studio. If, at any time, the transferred Studio ceases to be operated as a Studio, it will not count toward satisfaction of the Development Schedule.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a transferred Bft studio's contribution to the Development Schedule is contingent upon its continued operation as a Bft studio. The Development Schedule outlines the timeline and requirements for a developer to open a certain number of Bft studios within a specific area and timeframe.
Specifically, if a developer transfers a Bft studio to another party, the transferred studio will continue to count towards the developer's obligations under the Development Schedule only as long as the studio remains open and operating as a Bft franchise. However, if the transferred Bft studio ceases to operate as a Bft studio at any point, it will no longer be counted when determining the developer's compliance with the Development Schedule.
This condition creates an incentive for Bft developers to ensure that any transferred studios continue to operate under the Bft brand. If a transferred studio closes or is converted to a different concept, the developer risks falling short of their development obligations, which could lead to penalties or other consequences as outlined in their multi-unit agreement with Bft.