Does the length of the Bft Multi-Unit Agreement term differ for each developer?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi-Unit Agreement | Summary | |
|---|---|---|---|
| a. | Length of the term of the Multi-Unit Agreement | Section 2.A, Exhibit A | The Development Schedule will dictate the amount of time you have to open a specific number of franchises, which will differ for each Developer. |
| Provision | Section in Multi-Unit Agreement | Summary | |
| ---- | ----------------------------------------------------- | ------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| b. | Renewal or extension of the term | Section 2.C | If you fail to comply with your Development Schedule, you will be afforded a one-time reasonable extension of time not to exceed 90 days to comply with the Development Schedule. |
| c. | Requirements for developer to renew or extend | Section 2.C | You must have already signed a lease for the applicable premises and you request such extension at least 30 days prior to development deadline |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the length of the Multi-Unit Agreement term varies for each developer. The specific duration is determined by the Development Schedule, which outlines the timeframe a developer has to open a specified number of Bft franchises. This schedule is not uniform and is tailored to each individual developer's agreement.
This means that the term of the Multi-Unit Agreement is directly tied to the developer's ability to meet the milestones set out in their Development Schedule. The Development Schedule dictates the number of franchises that must be opened within a specific time frame. Failing to meet these milestones could affect the agreement's term, potentially leading to termination if the developer does not comply with the schedule.
Bft does offer a one-time extension of up to 90 days if a developer fails to comply with their Development Schedule. However, to qualify for this extension, the developer must have already secured a lease for the relevant premises and request the extension at least 30 days before the original development deadline. This extension provides a limited opportunity to rectify any delays, but it is not guaranteed and is subject to specific conditions.
Prospective multi-unit developers should carefully review the Development Schedule outlined in their Multi-Unit Agreement to fully understand the term length and associated obligations. Understanding the specific requirements and deadlines is crucial for successfully managing the development of multiple Bft franchise locations and maintaining compliance with the agreement.