What must Bft multi-unit developers do with their affiliates regarding the Development Schedule?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
We also offer qualified individuals and entities the right to acquire multiple Franchises (the "Development Rights") within a designated geographical area (the "Development Area") under our current form of multi-unit agreement, which is attached to this Disclosure Document as Exhibit K (the "Multi-Unit Agreement"). The Multi-Unit Agreement will provide a designated schedule in which you (or your affiliates) must acquire Franchises and open and operate the designated number of Studios (a "Development Schedule").
Under the Multi-Unit Agreement, the minimum number of Franchises you may commit to acquiring is three. For each Franchise you acquire pursuant to the Multi-Unit Agreement, you (or your affiliate) will sign our then-current form of Franchise Agreement. When you sign the Multi-Unit Agreement, you will also sign your 1st Franchise Agreement in the form attached to this Disclosure Document as Exhibit A. Each subsequent Franchise Agreement you sign will be our then-current form, and it might contain terms that are materially different than those found in our current form, including with respect to fees.
You will be required to pay us a one-time development fee that will be calculated based on the number of Studios you commit to develop under the Multi-Unit Agreement (the "Development Fee").
Source: Item 1 — THE FRANCHISOR, ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–12)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, multi-unit developers (those acquiring multiple franchises) must adhere to a Development Schedule, which outlines the timeline for acquiring franchises and opening studios. This schedule applies not only to the developer but also to their affiliates. The Multi-Unit Agreement dictates that the developer (or their affiliates) must acquire franchises and open/operate a specified number of Bft studios according to this Development Schedule.
This means that if a multi-unit developer uses affiliated entities to manage or operate some of their Bft franchises, those affiliates are also bound by the Development Schedule outlined in the Multi-Unit Agreement. The minimum number of franchises a developer may commit to acquiring under a Multi-Unit Agreement is three.
For a prospective Bft multi-unit franchisee, this highlights the importance of carefully planning the development timeline and ensuring that all affiliated entities are aware of and capable of meeting the obligations outlined in the Development Schedule. Failure to comply with the Development Schedule could result in penalties or termination of the Multi-Unit Agreement. Therefore, it is crucial to assess the capabilities and resources of all affiliates involved in the development process to ensure adherence to the agreed-upon schedule.