If awarded a Multi-Unit Agreement, what does Bft provide to the franchisee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are awarded the right to acquire multiple Franchises for Studios under our form of Multi-Unit Agreement, then we will provide you with a Development Area upon execution of the Multi-Unit Agreement. The size of your Development Area will substantially vary from other System developers based on: (i) the number of Studios we grant you the right to open and operate; and (ii) the location and demographics of the general area where we mutually agree you will be opening these Studios. The boundaries of your Development Area may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, or otherwise delineated on a map attached to the Multi-Unit Agreement.
You are responsible for locating and presenting to us proposed sites for Studios in the Development Area. We will use reasonable efforts to review and evaluate the proposed sites within 30 days after we receive all requested information and materials to evaluate the site. We will approve the proposed site for any Studio if it meets our thencurrent standards. If we accept a proposed site, you (or your affiliate) must timely sign a separate Franchise Agreement for the site. Each Studio you timely open and commence operating under our then-current form of franchise agreement will be operated: (i) from a distinct site located within the Development Area; and (ii) within its own Designated Territory that we will define once the site for that Studio has been approved.
As long as you are in compliance with your Multi-Unit Agreement, we will not operate, or grant a license to a third-party to operate, during the term of your Multi-Unit Agreement, a Studio located within the Development Area, and we will not grant anyone else the right to develop Studios within the Development Area, subject to our reservation of rights below.
You must comply with your development obligations under the Multi-Unit Agreement, including your Development Schedule, in order to maintain your development rights within the Development Area. If you do not comply with your Development Schedule, we may terminate your Multi-Unit Agreement and any further development rights you have under that agreement. Otherwise, we will not modify the size of your Development Area except by mutual written agreement signed by both parties.
Source: Item 12 — TERRITORY (FDD pages 50–54)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee is awarded the right to acquire multiple franchises for studios under a Multi-Unit Agreement, Bft will provide a Development Area upon the execution of the agreement. The size of the Development Area will vary based on the number of studios the franchisee has the right to open and operate, as well as the location and demographics of the general area where the studios will be opened. The boundaries of the Development Area may be defined using zip codes, streets, landmarks, county lines, or delineated on a map attached to the Multi-Unit Agreement.
The franchisee is responsible for finding and presenting proposed sites for the studios within the Development Area. Bft will use reasonable efforts to review and evaluate the proposed sites within 30 days after receiving all necessary information and materials. Bft will approve a proposed site if it meets their current standards. If Bft accepts a proposed site, the franchisee must sign a separate Franchise Agreement for that site. Each studio opened must be located within the Development Area and have its own Designated Territory, which Bft will define once the site is approved.
As long as the franchisee complies with the Multi-Unit Agreement, Bft will not operate or grant a license to a third party to operate a studio within the Development Area during the term of the agreement. Bft also will not grant anyone else the right to develop studios within the Development Area, subject to their reserved rights. However, the franchisee must meet their development obligations under the Multi-Unit Agreement, including adhering to the Development Schedule, to maintain their development rights within the Development Area. Failure to comply with the Development Schedule may result in the termination of the Multi-Unit Agreement and any further development rights. The size of the Development Area will not be modified unless both parties agree in writing.