Will Bft make payments owed to a franchisee to a third party?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
No payments which are owed to Franchisee hereunder will be made to a third party, and all payments will be made in the place where Franchisee's business is domiciled or where Franchisee performs services; and
- (8) Franchisee agrees that Franchisor may disclose the terms of this Agreement, including Franchisee's identity and the payment terms, to any third party who, in Franchisor's judgment, has a legitimate need to know, including government agencies.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft will not make payments owed to a franchisee to a third party. The FDD states that all payments due to the franchisee will be made by check or bank transfer, not in cash or bearer instruments. Furthermore, payments will be made to the franchisee's business domicile or where the franchisee performs services, and not to any third party.
This policy ensures that Bft maintains a direct financial relationship with its franchisees, promoting transparency and accountability. It prevents potential complications or disputes that could arise if payments were directed to third parties. This is a fairly standard practice in franchising, as franchisors typically prefer to manage financial transactions directly with their franchisees.
However, the FDD also states that Bft may disclose the terms of the agreement, including the franchisee's identity and payment terms, to any third party who, in Bft's judgment, has a legitimate need to know, including government agencies. This clause allows Bft to comply with legal or regulatory requirements and to provide necessary information to relevant parties while still maintaining control over the payment process.