What is the Non-Compliance Fee for a Bft franchisee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
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 of non-compliance. This fee is payable upon demand by Bft.
This fee is only charged if a franchisee fails to comply with their material obligations as outlined in the Franchise Agreement. The key word here is 'material,' meaning significant violations of the agreement. It is not for minor or trivial issues. The fee accrues daily for as long as the non-compliance continues, so it could potentially become a substantial amount if the issue is not resolved promptly.
Franchisees should carefully review the Franchise Agreement to understand what constitutes a 'material obligation' to avoid incurring this fee. It is also advisable to maintain open communication with Bft to address any potential compliance issues proactively.