In the Bft Multi-Unit Agreement, what is the 'Effective Date' used for?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| d Delay13 | ||
|---|---|---|
| C. | Franchisor's Discretion 13 | |
| D. | Developer's Responsibility 13 | |
| E. | No Recourse Against Nonparty Affiliates13 | |
| F. | Non-Disparagement14 | |
| 14. | ENTIRE AGREEMENT 14 | |
| EXHIBITS | ||
| EXHIBIT A | Ownership Interests; Development Area; Development Schedule; and Other Agreement Terms | |
| EXHIBIT B | Guarantee, Indemnification, and Acknowledgment |
BFT FRANCHISE SPV, LLC MULTI-UNIT AGREEMENT
This Multi-Unit Agreement (this "Agreement") is made effective as of the Effective Date by and between BFT FRANCHISE SPV, LLC, a Delaware limited liability company with its principal business address at 17877 Von Karman Ave., Suite 100 Irvine, CA 92614 ("Franchisor"), and the person or entity identified as the "Developer" in the signature blocks below ("Developer," and together with Franchisor, the "Parties"). The Effective Date is the date Franchisor signs this Agreement as shown beneath its signature hereto.
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 'Effective Date' in the Multi-Unit Agreement signifies when the agreement is officially made. The agreement is effective as of the date that Bft signs the agreement. This date is shown beneath Bft's signature. The document also states that the parties have executed and delivered the agreement to be effective as of the effective date of the Multi-Unit Agreement.
For a prospective Bft franchisee, the effective date is important because it marks the commencement of the contractual relationship and obligations outlined in the Multi-Unit Agreement. This date is used in several riders to the agreement for use in specific states, including Illinois, Maryland, Minnesota, North Dakota, and Washington.
Furthermore, the effective date is relevant to the guarantee provided by any guarantors, ensuring their obligations are tied to the performance of the developer under the Multi-Unit Agreement from that date forward. The guarantee remains in effect for obligations arising on or before the expiration or termination date of the Multi-Unit Agreement.
In essence, the 'Effective Date' serves as a crucial reference point for determining the start of legal obligations, the applicability of state-specific regulations, and the duration of various clauses and guarantees within the Bft Multi-Unit Agreement.