What is the 'Lease Execution Deadline' for a Bft studio, and what happens if it's missed?

According to Bft's 2025 Franchise Disclosure Document, a franchisee must execute a written premises lease agreement accepted by Bft for the authorized location no later than six months after the execution of the Franchise Agreement. This is referred to as the "Lease Execution Deadline." The franchisee must also open the studio's doors to the general public for regular classes in the physical premises of the studio (the "Soft Opening") no later than fifteen months after the execution of the agreement, which is called the "Opening Deadline".

Missing the Lease Execution Deadline could have significant repercussions. While the FDD excerpt does not explicitly state the consequences of failing to meet this deadline, it is reasonable to assume that Bft could consider it a breach of the Franchise Agreement. This could potentially lead to termination of the agreement, resulting in the loss of the franchise and any associated investments.

Prospective franchisees should carefully consider the timeline and requirements for securing a lease and opening their Bft studio. It is crucial to have a clear understanding of the local real estate market, construction timelines, and any potential delays that could impact their ability to meet the deadlines. Franchisees should also maintain open communication with Bft throughout the process to address any challenges and ensure compliance with all requirements. It would be prudent for a prospective franchisee to ask Bft about the ramifications of missing the Lease Execution Deadline.