What is Bft's intention regarding litigation brought against it?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company is subject to normal and routine litigation brought by customers, franchisees, vendors or others. The Company intends to defend itself in any such matters. The Company believes that the ultimate determination of liability in connection with legal claims pending against it, if any, will not have a material adverse effect on its business, annual results of operations, liquidity or financial position; however, it is possible that the Company's business, results of operations, liquidity, or financial condition could be materially affected in a particular future reporting period by the unfavorable resolution of one or more matters or contingencies during such period.
Other Regulatory Matters – On April 10, 2023, the Company, the Member and the Member's Parent (collectively the "Defendants") received notice of an investigation from the Commissioner of California's Department of Financial Protection and Innovation ("DFPI") related to the Defendants' compliance with California's Franchise Investment Law. On November 4, 2024, without admission of wrongdoing the Defendants entered into a Consent Order with the DFPI to reso
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft acknowledges being subject to normal and routine litigation from various parties including customers, franchisees, and vendors. Bft states its intention to defend itself in any such legal matters.
Bft believes that the ultimate determination of liability in connection with any pending legal claims will not have a materially adverse effect on its business, annual results of operations, liquidity, or financial position. However, Bft acknowledges the possibility that its business, results of operations, liquidity, or financial condition could be materially affected in a particular future reporting period by the unfavorable resolution of one or more matters or contingencies during such period.
In addition, Bft received notice of an investigation from the Commissioner of California's Department of Financial Protection and Innovation ("DFPI") related to compliance with California's Franchise Investment Law on April 10, 2023. On November 4, 2024, without admission of wrongdoing, Bft entered into a Consent Order with the DFPI to resolve the matter.