What is the Non-Compliance Fee for each day of non-compliance with the Bft Franchise Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Music Licensing Fee 4 | Amounts charged by the providers and/or applicable performing rights organizations (PROs) for such music licensing | As invoiced or otherwise agreed | We may require that the music licensing fee (the “Music Licensing Fee”) amount be paid directly to performing rights organizations (PROs) or to our then-current Approved Supplier (which may be us or our affiliate) that handles and manages these licenses for System franchisees. |
| Insurance Policies 5 | Amount of unpaid premium | As agreed | Payable only if you fail to maintain required insurance coverage and we elect to obtain coverage for you. |
| Audit Fees 6 | Costs incurred by us in connection with conducting audit Currently, we estimate that such costs will typically be between $500 to $2,500 (plus costs of any travel) | Within 15 calendar days after receipt of audit report | Payable only if (a) an audit or review shows an understatement of Gross Sales for the audited period of 2% or more, or (b) the audit or review is being conducted in response to your failure to timely submit any reports required by your Franchise Agreement. |
| Mystery Shopper and Other Quality Control Programs | If charged, up to $500 per year | Within 30 days of demand | Payable only if we establish a mystery shopper program or other quality control mechanism or program, in which case we may require a franchisee to contribute up to $500/year to help defray the costs of such programs that are designed to preserve the goodwill and brand image. These fees are not currently imposed. |
| Late Fees | The lesser of (a) the highest applicable legal rate for open account business credit, or (b) 1.5% per month | Upon demand | Applies to all amounts not paid when due, until paid in full. We may also require you to pay an administrative fee of $50 for each late payment or late report. |
| Non-Compliance Fee | $100 for each day of non-compliance | Upon demand | Payable only in the event you fail to comply with your material obligations under your Franchise Agreement. The Non-Compliance Fee will be incurred during each day of non-compliance. |
| Cost of Enforcement or Defense | All costs including attorneys’ fees | Upon settlement or conclusion of claim or action | You will reimburse us for all costs in enforcing our obligations concerning the Franchise Agreement if we prevail. |
| Indemnification | All costs including attorneys’ fees | Upon settlement or conclusion of claim or action | You will defend suits at your |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee may incur a Non-Compliance Fee of $100 for each day they fail to meet their obligations under the Franchise Agreement. This fee is payable upon demand by Bft.
This Non-Compliance Fee is only applied if a franchisee fails to comply with the material obligations outlined in the Bft Franchise Agreement. The fee accrues daily for each day the franchisee remains non-compliant, meaning the longer the non-compliance persists, the more the franchisee will owe.
Franchisees should carefully review the Franchise Agreement to understand their obligations and ensure compliance to avoid incurring these fees. It is important to address any issues promptly to minimize the financial impact of the Non-Compliance Fee, as these fees can accumulate quickly.