If applicable state franchise law applies to a Bft franchisee, will the additional disclosures in Exhibit H apply to them?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Applicable state law may require additional disclosures related to the information in this Disclosure Document. These additional disclosures appear in Exhibit H, entitled State Specific Addenda, to this Disclosure Document.
EXHIBIT H
STATE SPECIFIC ADDENDA
ADDITIONAL DISCLOSURES FOR THE FRANCHISE DISCLOSURE DOCUMENT OF BFT FRANCHISE SPV, LLC
The following are additional disclosures for the Franchise Disclosure Document of BFT FRANCHISE SPV, LLC required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise law applies to you.
FOR THE FOLLOWING STATES: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA , OR WISCONSIN.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
CALIFORNIA
The registration of this franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the Commissioner.
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, Exhibit H, titled "State Specific Addenda," contains additional disclosures required by various state franchise laws. These additional disclosures will only apply to a Bft franchisee if the applicable state franchise law applies to them. Exhibit H includes specific addenda for franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, or Wisconsin.
For franchisees in the listed states, certain provisions are in place to protect their rights. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Bft or its representatives. This provision takes precedence over any conflicting terms in other documents executed in connection with the franchise agreement.
For example, the California addendum notes that the registration of the franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the Commissioner. This is a standard disclaimer to prevent franchisees from assuming state endorsement of the franchise. Therefore, if a franchisee is located in one of the listed states and state franchise law applies, they should carefully review Exhibit H for additional disclosures and protections relevant to their specific state.