During the Interim Period, what fees is a Bft franchisee obligated to pay?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
If, in its discretion and without seeking to enforce Franchisee's post-term obligations set forth in Section 15.3 of this Agreement, Franchisor suffers Franchisee's continued operation of its Studio pursuant to this Agreement beyond the expiration of the Term, such continuance of operations shall be deemed to be Franchisee's election to extend the Term on a month-to-month basis (the "Interim Period") and, in addition to all other rights Franchisor may have as a result of Franchisee's noncompliance with this Agreement, Franchisor may terminate this Agreement during the Interim Period in accordance with Section 15.1(A) and Section 15.1(B) below or, without any cause or reason, upon 30 days' prior written notice. The Interim Period shall be considered part of the Term. However, if Franchisee is granted a Successor Franchise, the term of the Successor Franchise Agreement will be deemed to have begun upon expiration of the Term of this Agreement, rather than the Interim Period. If Franchisor allows for an Interim Period, Franchisee must comply with all of its obligations under this Agreement during the Interim Period; provided, however, upon the commencement of the Interim Period, Franchisee (i) will be required to pay the then-current Royalty Fee (as defined in Section 5.2 of this Agreement), then-current Fund Contributions (as defined in Section 5.6 of this Agreement), and all other then-current fees required to be paid by franchisees, and (ii) must deliver an executed general release in the form and substance satisfactory to Franchisor, releasing any and all claims Franchisee and its related parties may have against Franchisor and its affiliates, and their respective owners, officers, directors, employees, agents, successors and assigns. By accepting any then-current fees, Franchisor does not waive any of its rights and remedies under this Agreement, including the right to terminate 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 continues to operate their studio beyond the original term on a month-to-month basis, known as the "Interim Period," they must adhere to all obligations outlined in the Franchise Agreement. Specifically, the franchisee is required to pay the then-current Royalty Fee, Fund Contributions, and all other then-current fees that are required to be paid by franchisees.
This means that a Bft franchisee operating under an Interim Period must continue to pay all applicable fees to Bft to continue operations. Additionally, the franchisee must deliver an executed general release in a form and substance satisfactory to Bft, which releases any and all claims the franchisee and its related parties may have against Bft and its affiliates.
It is important to note that by accepting these fees during the Interim Period, Bft does not waive any of its rights and remedies under the Franchise Agreement, including the right to terminate the agreement. This ensures that Bft retains its ability to enforce the terms of the agreement even while allowing the franchisee to operate on an interim basis.