If a Bft Franchisee defaults on their obligations, can the Franchisor take possession of the Studio?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
will be suffered by Franchisor in the event of a termination as described above and is not a penalty, and (b) Lost Revenue Damages represent only lost Royalty and Fund Contributions, and the right to recover such damages is not exclusive of and does not replace any other rights Franchisor has under this Agreement or applicable law if this Agreement is terminated as described above, including the right to seek other damages it suffers as a result of a termination as described above or the events on which such termination was based.
K. Termination or expiration of this Agreement shall not affect, modify or discharge any claims, rights, causes of action or remedies, which Franchisor may have against Franchisee, whether under this Agreement or otherwise, for any reason whatsoever, whether such claims or rights arise before or after termination.
15.4 Franchisor's Rights and Remedies in Addition to Termination.
If Franchisee shall be in default in the performance of any of its obligations or breach any term or condition of this Agreement, in addition to Franchisor's right to terminate this Agreement, and without limiting any other rights or remedies to which Franchisor may be entitled at law or in equity, or if Franchisor has issued a notice to Franchisee in exercise of its rights to purchase the Studio under Section 15.3.I above, then, Franchisor may, at its election, immediately or at any time thereafter, and without notice to Franchisee, cure such default on Franchisee's behalf and, in its discretion, either directly or through its designee, enter upon and take possession of the Studio, for a period not to exceed 180 days, and thereafter take, in the name of Franchisee, all other actions necessary to effect the provisions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee defaults on their obligations, Bft has the right to take possession of the studio. Specifically, if the franchisee is in default of any obligation or breaches any term of the agreement, Bft can elect to cure the default on the franchisee's behalf.
Bft can enter and take possession of the studio directly or through a designee for up to 180 days. During this period, Bft can take any actions necessary to enforce the franchise agreement in the name of the franchisee. The franchisee agrees that this entry and possession will not be considered trespassing or illegal, and Bft will not be liable to the franchisee for taking such actions.
The franchisee is obligated to pay Bft for all costs associated with curing the default and managing the studio, including reasonable compensation for Bft's management services. Bft is not required to use the franchisee's employees and can designate its own personnel to manage and operate the studio during this period. Termination or expiration of the agreement does not impact any claims, rights, or remedies Bft may have against the franchisee, whether the claims arise before or after termination.