What information or documents must a Bft franchisee provide to the franchisor when proposing a transfer?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2 Conditions for Consent of Transfer. Franchisee must provide Franchisor with all information or documents that Franchisor requests about the proposed Transfer, the transferee, and its owners. Upon Franchisor's receipt of such information, Franchisor shall not unreasonably withhold its consent of a proposed transfer, provided that the prospective transferee, in Franchisor's reasonable judgment, and as demonstrated by satisfactory background and credit checks (including bankruptcy search, criminal and litigation histories, United States Office of Foreign Assets Control search, politically exposed persons PEP search) conducted by reputable agencies and sources, is of good moral character and reputation, has no conflicting interests, has a good credit rating and sufficient and competent business experience, aptitude and financial resources acceptable to Franchisor's then-current standards for franchisees; and that the following conditions are met: (1) Franchisee pays Franchisor a transfer fee in an amount equal to $10,000
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, a franchisee seeking to transfer their interest in the franchise must provide Bft with all information or documents that Bft requests regarding the proposed transfer, the prospective transferee, and the transferee's owners. This information allows Bft to assess the suitability of the proposed transferee.
Bft will evaluate the prospective transferee based on several factors, including their moral character, reputation, absence of conflicting interests, credit rating, and their business experience, aptitude, and financial resources. These qualifications must meet Bft's then-current standards for franchisees. Bft assesses these qualities through background and credit checks conducted by reputable agencies.
In addition to assessing the transferee, Bft maintains a right of first refusal. If a franchisee desires to transfer their interest, they must obtain a bona fide, executed written offer from a fully disclosed buyer and send a complete copy to Bft. This offer must detail the payment terms and financing sources for the proposed purchase. To be considered valid, the offer must include a dollar amount for the purchase price, and the buyer must submit an earnest money deposit of at least 5% of the offering price. Bft may also require the franchisee to provide copies of any materials or information shared with the potential buyer regarding the transaction.