If a Bft franchisee requests an amendment to avoid being in default, who is responsible for the legal fees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Apart from the obligations in Sections 16.11.A and 16.11.B, Franchisee agrees and acknowledges that it will be responsible for the legal fees and other costs that Franchisor incurs in connection with certain modifications that Franchisor agrees to make to the Franchise Agreement, including without limitation, modifications made to address the following situations: (i) relocation; or (ii) any other amendment to extend a given performance deadline of Franchisee, modify the Designated Territory awarded hereunder, or otherwise modify, amend or supplement this Agreement in any way at the request of Franchisee or as necessary for Franchisee to avoid this Agreement being in default or subject to termination.
Franchisor may set forth flat fee amounts designed to help defray the costs associated with addressing certain of the foregoing situations in the context of this Agreement or any other agreement with Franchisor, whether in the Learning Management System or otherwise in a writing distributed to System franchisees.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchisee is generally responsible for legal fees and other costs incurred by Bft when modifications are made to the Franchise Agreement at the franchisee's request to avoid being in default or subject to termination. This includes modifications to extend a performance deadline, modify the designated territory, or otherwise amend the agreement.
This means that if a Bft franchisee finds themselves in a situation where they are at risk of defaulting on their agreement and requests an amendment to rectify the situation, they will likely have to cover Bft's legal costs associated with drafting and implementing that amendment. This could include situations such as needing more time to meet certain opening deadlines or wanting to adjust the territory boundaries.
Bft may establish flat fee amounts to help cover the costs of addressing these situations, which would be outlined in the Learning Management System or in a written document distributed to franchisees. Therefore, it is important for prospective franchisees to understand that requesting changes to their agreement, even to avoid default, can result in additional expenses for legal fees. Franchisees should carefully consider the potential costs before requesting any modifications to the Franchise Agreement.