If a Bft franchisee desires to engage in a transfer, what must they obtain from a buyer?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5 Franchisor's Right of First Refusal. If Franchisee (or any of its owners) desire to engage in a Transfer, Franchisee (or its owners) agree to obtain from a responsible and fully disclosed buyer, and send to Franchisor, a true and complete copy of a bona fide, executed written offer (which may include a letter of intent) relating exclusively to an interest in Franchisee or in this Agreement and the Studio. The offer must include details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price. To be a valid, bona fide offer, the proposed purchase price must be in a dollar amount, and the proposed buyer must submit with its offer an earnest money deposit equal to five percent (5%) or more of the offering price. The right of first refusal process will not be triggered by a proposed Transfer that would not be allowed under Sections 14.1 and 14.2 above. Franchisor may require Franchisee (or its owners) to send to Franchisor copies of any materials or information sent to the proposed buyer or transferee regarding the possible transaction.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their interest in the franchise, they must first obtain a bona fide, executed written offer from a responsible and fully disclosed buyer. This offer must be sent to Bft and exclusively relate to the interest in the franchisee's business or the Franchise Agreement and the Studio.
The offer needs to include specific details regarding payment terms and the financing sources for the proposed purchase price. To be considered a valid offer, the purchase price must be a concrete dollar amount, and the buyer must submit an earnest money deposit that is equal to at least five percent of the total offering price.
Bft also has the right to request any materials or information that the franchisee sends to the potential buyer regarding the transaction. This ensures Bft has complete transparency and can make an informed decision regarding the transfer. This process is not triggered if the transfer would not be allowed under other sections of the agreement.